ethics intro

8/2/2019 Ethics Intro

1/13

Ethics Intro, Definition, Meaning of ethics, objectives and scope of ethics

Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending,

and recommending concepts of right and wrong behavior. Major areas of study in ethics include:[1]

Meta-ethics, about the theoretical meaning and reference of moral propositions and how their truth

values (if any) may be determined;

Normative ethics, about the practical means of determining a moral course of action;

Applied ethics, about how moral outcomes can be achieved in specific situations;

Each of these areas include many further sub-fields of study.

Meta-ethics

Meta-ethics is a field within ethics that seeks to understand the nature of normative ethics. The focus of

meta-ethics is on how we understand, know about, and what we mean when we talk about what is rightand what is wrong.

Meta-ethics came to the fore with G.E. Moore's famous work Principia Ethica from 1903. In it he first

wrote about what he called the naturalistic fallacy. Moore was seen to reject naturalism in ethics, in his

Open Question Argument. This made thinkers look again at second order questions about ethics. Earlier,

the Scottish philosopher David Hume had put forward a similar view on the difference between facts

and values.

Studies of how we know in ethics divide into cognitivism and non-cognitivism; this is similar to the

contrast between descriptivists and non-descriptivists. Non-cognitivism is the claim that when we judge

something as right or wrong, this is neither true nor false. We may, e.g. be only expressing our

emotional feelings about these things.[2] Cognitivism can then be seen as the claim that when we talk

about right and wrong, we are talking about matters of fact.

The ontology of ethics is about value-bearing things or properties, i.e. the kind of things or stuff referred

to by ethical propositions. Non-descriptivists and non-cognitivists believe that ethics does not need a

specific ontology, since ethical propositions do not refer. This is known as an anti-realist position.

Realists on the other hand must explain what kind of entities, properties or states are relevant for

ethics, how they have value, and why they guide and motivate our actions.[3]

Normative ethics

Traditionally, normative ethics (also known as moral theory) was the study of what makes actions right

and wrong. These theories offered an overarching moral principle one could appeal to in resolving

difficult moral decisions.

At the turn of the 20th century, moral theories became more complex and are no longer concerned

solely with rightness and wrongness, but are interested in many different kinds of moral status. During


2/13

the middle of the century, the study of normative ethics declined as meta-ethics grew in prominence.

This focus on meta-ethics was in part caused by an intense linguistic focus in analytic philosophy and by

the popularity of logical positivism.

In 1971 John Rawls published A Theory of Justice, noteworthy in its pursuit of moral arguments and

eschewing of meta-ethics. This publication set the trend for renewed interest in normative ethics.

Applied ethics

Applied ethics is a discipline of philosophy that attempts to apply ethical theory to real-life situations.

The discipline has many specialized fields, such as Engineering Ethics, bioethics, public service ethics and

business ethics.

Applied ethics is used in some aspects of determining public policy, as well as by individuals facing

difficult decisions. The sort of questions addressed by applied ethics include: "Is getting an abortion

immoral?" "Is euthanasia immoral?" "Is affirmative action right or wrong?" "What are human rights, and

how do we determine them?" "Do animals have rights as well?" and "Do individuals have the right ofself determination?"

A more specific question could be: "If someone else can make better out of his/her life than I can, is it

then moral to sacrifice myself for them if needed?" Without these questions there is no clear fulcrum on

which to balance law, politics, and the practice of arbitration in fact, no common assumptions of all

participantsso the ability to formulate the questions are prior to rights balancing. But not all questions

studied in applied ethics concern public policy. For example, making ethical judgments regarding

questions such as, "Is lying always wrong?" and, "If not, when is it permissible?" is prior to any etiquette.

People in-general are more comfortable with dichotomies (two opposites). However, in ethics the issues

are most often multifaceted and the best proposed actions address many different areas concurrently.

In ethical decisions the answer is almost never a "yes or no", "right or wrong" statement. Many buttons

are pushed so that the overall condition is improved and not to the benefit of any particular faction.

Relational ethics

Relational ethics are related to an ethics of care.[25] They are used in qualitative research, especially

ethnography and authoethnography. Researchers who employ relational ethics value and respect the

connection between themselves and the people they study, and "between researchers and the

communities in which they live and work" (Ellis, 2007, p. 4).[26] Relational ethics also help researchers

understand difficult issues such as conducting research on intimate others that have died anddeveloping friendships with their participants.[27][28]

Military ethics

Military ethics are intended to guide members of the armed forces to act in a manner consistent with

the requirements of combat and military organization. While Just war theory is generally seen to set the

background terms of moral debate, individual countries have more specific methods of upholding these


3/13

ethical principles. In the United States, for example, the Department of Defense 5500.7-R (DoD 5500.7-

R), serves as the primary regulatory source of ethical standards and conduct to members of the Armed

Services (DoD, pg 1).

Military ethics involves multiple subareas, including the following among others:

1. justification for the initiation of military force.2. decisions about who may be targeted inwarfare

standards for handling military prisoners 3. methods of dealing with violations of the laws of war

Public service ethics

Public service ethics is a set of principles that guide public officials in their service to their constituents,

including their decision-making on behalf of their constituents. Fundamental to the concept of public

service ethics is the notion that decisions and actions are based on what best serves the public's

interests, as opposed to the official's personal interests (including financial interests) or self-serving

political interests.[29]

Business Ethics

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines

ethical principles and moral or ethical problems that arise in a business environment. It applies to all

aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Business ethics has both normative and descriptive dimensions. As a corporate practice and a career

specialization, the field is primarily normative. Academics attempting to understand business behavior

employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of

profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated

dramatically during the 1980s and 1990s, both within major corporations and within academia. For

example, today most major corporations promote their commitment to non-economic values under

headings such as ethics codes and social responsibility charters. Ethics implicitly regulates areas and

details of behavior that lie beyond governmental control

Business ethics reflects the philosophy of business, one of whose aims is to determine the fundamental

purposes of a company. If a company's purpose is to maximize shareholder returns, then sacrificing

profits to other concerns is a violation of its fiduciary responsibility. Corporate entities are legally

considered as persons in USA and in most nations. The 'corporate persons' are legally entitled to the

rights and liabilities due to citizens as persons.

Finance-Fairness in trading practices, trading conditions, financial contracting, sales practices,

consultancy services, tax payments, internal audit, external audit and executive compensation also fall

under the umbrella of finance and accounting.[38][73] Particular corporate ethical/legal abuses include:

creative accounting, earnings management, misleading financial analysis insider trading, securities

fraud, bribery/kickbacks and facilitation payments. Outside of corporations, bucket shops and forex


4/13

scams are criminal manipulations of financial markets. Cases include accounting scandals, Enron,

WorldCom and Satyam.

HRM-Issues including employment itself, privacy, compensation in accord with comparable worth,

collective bargaining (and/or its opposite) can be seen either as inalienable rights[78][79] or as

negotiable.[80][81][82][83][84] Discrimination by age (preferring the young or the old), gender/sexualharassment, race, religion, disability, weight and attractiveness. A common approach to remedying

discrimination is affirmative action.

Potential employees have ethical obligations to employers, involving intellectual property protection

and whistle-blowing.

Employers must consider workplace safety, which may involve modifying the workplace, or providing

appropriate training or hazard disclosure.

Larger economic issues such as immigration, trade policy, globalization and trade unionism affect

workplaces and have an ethical dimension, but are often beyond the purview of individual companies

Sales & Marketing-Ethics in marketing deals with the principles, values and/or ideals by which

marketers (and marketing institutions) ought to act.[106] Marketing ethics is also contested terrain,

beyond the previously described issue of potential conflicts between profitability and other concerns.

Ethical marketing issues include marketing redundant or dangerous products/services[107][108][109]

transparency about environmental risks, transparency about product ingredients such as genetically

modified organisms[110][111][112][113] possible health risks, financial risks, security risks, etc.,[114]

respect for consumer privacy and autonomy,[115] advertising truthfulness and fairness in pricing &

distribution.[116]

According to Borgerson, and Schroeder (2008), marketing can influence individuals' perceptions of and

interactions with other people, implying an ethical responsibility to avoid distorting those perceptions

and interactions.[117]

Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions

including price discrimination and price skimming. Certain promotional activities have drawn fire,

including greenwashing, bait and switch, shilling, viral marketing, spam (electronic), pyramid schemes

and multi-level marketing. Advertising has raised objections about attack ads, subliminal messages, sex

in advertising and marketing in schools.

Production-

This area of business ethics usually deals with the duties of a company to ensure that products and

production processes do not needlessly cause harm. Since few goods and services can be produced and

consumed with zero risk, determining the ethical course can be problematic. In some case consumers

demand products that harm them, such as tobacco products. Production may have environmental

impacts, including pollution, habitat destruction and urban sprawl. The downstream effects of

technologies nuclear power, genetically modified food and mobile phones may not be well understood.


5/13

While the precautionary principle may prohibit introducing new technology whose consequences are

not fully understood, that principle would have prohibited most new technology introduced since the

industrial revolution. Product testing protocols have been attacked for violating the rights of both

humans and animals[citation needed

Culture and Ethics, OSHA model?

Value System

A value system is a set of consistent ethic values (more specifically the personal and cultural values) and

measures[clarification needed] used for the purpose of ethical or ideological integrity. A well defined

value system is a moral code.

As a member of a society, group or community, an individual can hold both a personal value system and

a communal value system at the same time. In this case, the two value systems (one personal and one

communal) are externally consistent provided they bear no contradictions or situational exceptions

between them.

A value system in its own right is internally consistent when

its values do not contradict each other and

its exceptions are

abstract enough to be used in all situations and

consistently applied.

Conversely, a value system by itself is internally inconsistent if:

its values contradict each other and

its exceptions are

highly situational and

inconsistently applied.

One of the conditions required for consistency in any (?) logical (i.e. value-conserving) system of

statements is their transitivity. (See: Intransitivity. Occurrences.) Without it, it might eventually happen

that A is of greater value than B, yet B is of greater value than Awhich is a case of mutual contradiction


6/13

in certain statements that determine values of A and B in the system. Value system consistency can be a

value in and of itself.

Virtues

A virtue is a positive trait or quality subjectively deemed to be morally excellent and thus is valued as a

foundation of principle and good moral being. Personal virtues are characteristics valued as promoting

collective and individual greatness. The opposite of virtue is vice.

Virtue is a pattern of thought and behavior based on high moral standards. Virtues can be placed into a

broader context of values. Each individual has a core of underlying values that contribute to his or her

system of beliefs, ideas and/or opinions (see value in semiotics). Integrity in the application of a value

ensures its continuity and this continuity separates a value from beliefs, opinion and ideas. In this

context, a value (e.g., Truth or Equality or Creed) is the core from which we operate or react. Societies

have values that are shared among many of the participants in that culture. An individual's values

typically are largely, but not entirely, in agreement with the values of his or her culture.

The four classic Western Cardinal virtues are:

temperance: (sphrosyn)

prudence: (phronsis)

courage: (andreia)

justice: (dikaiosyn)

Attitude

An attitude is a favorable or unfavorable evaluation of something.[1] Attitudes are generally positive or

negative views of a person, place, thing, or event this is often referred to as the attitude object.

People can also be conflicted or ambivalent toward an object, meaning that they simultaneously possess

both positive and negative attitudes toward the item in question.

An attitude can be defined as a positive or negative evaluation of people, objects, event, activities,

ideas, or just about anything in your environment (Zimbardo et al., 1999) In the opinion of Bain (1927),

an attitude is "the relatively stable overt behavior of a person which affects his status." "Attitudes which

are different to a group are thus social attitudes or `values' in the Thomasonian sense. The attitude is

the status-fixing behavior. This differentiates it from habit and vegetative processes as such, and totally

ignores the hypothetical 'subjective states' which have formerly been emphasized.It is how one judges

any person,situation or object.

North (1932) has defined attitude as "the totality of those states that lead to or point toward some

particular activity of the organism. The attitude is, therefore, the dynamic element in human behavior,

the motive for activity." For Lumley (1928) an attitude is "a susceptibility to certain kinds of stimuli and

readiness to respond repeatedly in a given waywhich are possible toward our world and the parts of it


7/13

which impinge upon us." Attitudes are judgments. They develop on the ABC model (affect, behavior, and

cognition).[2] The affective response is an emotional response that expresses an individual's degree of

preference for an entity. The behavioral intention is a verbal indication or typical behavioral tendency of

an individual. The cognitive response is a cognitive evaluation of the entity that constitutes an

individual's beliefs about the object.[citation needed] Most attitudes are the result of either direct

experience or observational learning from the environment.

Morality

Morality (from the Latin moralitas "manner, character, proper behavior") is the differentiation of

intentions, decisions, and actions between those that are good (or right) and those that are bad (or

wrong). A moral code is a system of morality (for example, according to a particular philosophy, religion,

culture, etc.) and a moral is any one practice or teaching within a moral code. The adjective moral is

synonymous with "good" or "right." Immorality is the active opposition to morality (i.e. good or right),

while amorality is variously defined as an unawareness of, indifference toward, or disbelief in any set of

moral standards or principles.

Belief Character - Behavior Matrix

Gandhian Philosophy

The pivotal and defining element of Gandhism is satya, a Sanskrit word usually translated into English as

truth, whose literal meaning is 'what actually is' (deriving from the root verb as meaning 'to be'). The

principle of Satya as espoused by Gandhi needed that Truth must pervade all considerations of politics, e

the pure, existing facts of life to make his decisions.

Gandhis commitments to non-violence, human freedom, equality and justice arose from his personal

examination.

Ahimsa, or non-violence, was another key tenet of Gandhi's beliefs. He held that total non-violence

would rid a person of anger, obsession and destructive impulses. While his vegetarianism was inspired

by his rearing in the Hindu-Jain culture of Gujarat, it was also an extension of ahimsa.

at the age of 36, Gandhi adopted the vow of brahmacharya, or celibacy. He committed himself to the

control of the senses, thoughts and actions. Celibacy was important to Gandhi for not only purifying

himself of any lust and sexual urges, but also to purify his love for his wife as genuine and not an outlet

for any turmoil or aggression within his mind.

Nature of Ethics - Normative Ethics?


8/13

Corporate Social Responsibility of Business

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social

performance, or sustainable responsible business/ Responsible Business)[1] is a form of corporate self-

regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism

whereby a business monitors and ensures its active compliance with the spirit of the law, ethicalstandards, and international norms. The goal of CSR is to embrace responsibility for the company's

actions and encourage a positive impact through its activities on the environment, consumers,

employees, communities, stakeholders and all other members of the public sphere who may also be

considered as stakeholders.

The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after

many multinational corporations formed the term stakeholder, meaning those on whom an

organization's activities have an impact. It was used to describe corporate owners beyond shareholders

as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach

in 1984.[2] Proponents argue that corporations make more long term profits by operating with a

perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue

CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over

powerful multinational corporations.

CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will

uphold to its consumers. Development business ethics is one of the forms of applied ethics that

examines ethical principles and moral or ethical problems that can arise in a business environment. ISO26000 is the recognized international standard for CSR. Public sector organizations (the United Nations

for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar

principles but with no formal act of legislation. The UN has developed the Principles for Responsible

Investment as guidelines for investing entities.

Benefits-Human resources

A CSR program can be an aid to recruitment and retention,[14] particularly within the competitive

graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and

having a comprehensive policy can give an advantage. CSR can also help improve the perception of a

company among its staff, particularly when staff can become involved through payroll giving, fundraisingactivities or community volunteering. CSR has been found to encourage customer orientation among

frontline employees.[15]

[edit] Risk management

Managing risk is a central part of many corporate strategies. Reputations that take decades to build up

can be ruined in hours through incidents such as corruption scandals or environmental accidents.[16]


9/13

These can also draw unwanted attention from regulators, courts, governments and media. Building a

genuine culture of 'doing the right thing' within a corporation can offset these risks.[17]

[edit] Brand differentiation-In crowded marketplaces, companies strive for a unique selling proposition

that can separate them from the competition in the minds of consumers. CSR can play a role in building

customer loyalty based on distinctive ethical values.[18] Several major brands, such as The Co-operativeGroup, The Body Shop and American Apparel[19] are built on ethical values. Business service

organizations can benefit too from building a reputation for integrity and best practice.

[edit] License to operate-Corporations are keen to avoid interference in their business through taxation

or regulations. By taking substantive voluntary steps, they can persuade governments and the wider

public that they are taking issues such as health and safety, diversity, or the environment seriously as

good corporate citizens with respect to labour standards and impacts on the environment

Kohl-bergs Theory/Model

The theory holds that moral reasoning, the basis for ethical behavior, has six identifiable developmentalstages, each more adequate at responding to moral dilemmas than its predecessor

Level 1 (Pre-Conventional)

1. Obedience and punishment orientation

(How can I avoid punishment?)

2. Self-interest orientation

(What's in it for me?)

(Paying for a benefit)

Level 2 (Conventional)

3. Interpersonal accord and conformity

(Social norms)

(The good boy/good girl attitude)

4. Authority and social-order maintaining orientation

(Law and order morality)

Level 3 (Post-Conventional)

5. Social contract orientation

6. Universal ethical principles- (Principled conscience)


10/13

[edit] Pre-conventional

The pre-conventional level of moral reasoning is especially common in children, although adults can also

exhibit this level of reasoning. Reasoners at this level judge the morality of an action by its direct

consequences. The pre-conventional level consists of the first and second stages of moral development,

and is solely concerned with the self in an egocentric manner. A child with preconventional morality hasnot yet adopted or internalized society's conventions regarding what is right or wrong, but instead

focuses largely on external consequences that certain actions may bring.[7][8][9]

In Stage one (obedience and punishment driven), individuals focus on the direct consequences of their

actions on themselves. For example, an action is perceived as morally wrong because the perpetrator is

punished. "The last time I did that I got spanked so I will not do it again." The worse the punishment for

the act is, the more "bad" the act is perceived to be.[15] This can give rise to an inference that even

innocent victims are guilty in proportion to their suffering. It is "egocentric", lacking recognition that

others' points of view are different from one's own.[16] There is "deference to superior power or

prestige".[16]

Stage two (self-interest driven) espouses the "what's in it for me" position, in which right behavior is

defined by whatever is in the individual's best interest. Stage two reasoning shows a limited interest in

the needs of others, but only to a point where it might further the individual's own interests. As a result,

concern for others is not based on loyalty or intrinsic respect, but rather a "you scratch my back, and I'll

scratch yours" mentality.[2] The lack of a societal perspective in the pre-conventional level is quite

different from the social contract (stage five), as all actions have the purpose of serving the individual's

own needs or interests. For the stage two theorist, the world's perspective is often seen as morally

relative.

[edit] Conventional

The conventional level of moral reasoning is typical of adolescents and adults. Those who reason in a

conventional way judge the morality of actions by comparing them to society's views and expectations.

The conventional level consists of the third and fourth stages of moral development. Conventional

morality is characterized by an acceptance of society's conventions concerning right and wrong. At this

level an individual obeys rules and follows society's norms even when there are no consequences for

obedience or disobedience. Adherence to rules and conventions is somewhat rigid, however, and a

rule's appropriateness or fairness is seldom questioned.[7][8][9]

In Stage three (interpersonal accord and conformity driven), the self enters society by filling social roles.

Individuals are receptive to approval or disapproval from others as it reflects society's accordance with

the perceived role. They try to be a "good boy" or "good girl" to live up to these expectations,[2] having

learned that there is inherent value in doing so. Stage three reasoning may judge the morality of an

action by evaluating its consequences in terms of a person's relationships, which now begin to include

things like respect, gratitude and the "golden rule". "I want to be liked and thought well of; apparently,

not being naughty makes people like me." Desire to maintain rules and authority exists only to further


11/13

support these social roles. The intentions of actors play a more significant role in reasoning at this stage;

"they mean well ...".[2]

In Stage four (authority and social order obedience driven), it is important to obey laws, dictums and

social conventions because of their importance in maintaining a functioning society. Moral reasoning in

stage four is thus beyond the need for individual approval exhibited in stage three. A central ideal orideals often prescribe what is right and wrong, such as in the case of fundamentalism. If one person

violates a law, perhaps everyone wouldthus there is an obligation and a duty to uphold laws and rules.

When someone does violate a law, it is morally wrong; culpability is thus a significant factor in this stage

as it separates the bad domains from the good ones. Most active members of society remain at stage

four, where morality is still predominantly dictated by an outside force.[2]

[edit] Post-Conventional

The post-conventional level, also known as the principled level, is marked by a growing realization that

individuals are separate entities from society, and that the individuals own perspective may take

precedence over societys view; individuals may disobey rules inconsistent with their own principles.

Post-conventional moralists live by their own ethical principlesprinciples that typically include such

basic human rights as life, liberty, and justice. People who exhibit post-conventional morality view rules

as useful but changeable mechanismsideally rules can maintain the general social order and protect

human rights. Rules are not absolute dictates that must be obeyed without question. Because post-

conventional individuals elevate their own moral evaluation of a situation over social conventions, their

behavior, especially at stage six, can be confused with that of those at the pre-conventional level.

Some theorists have speculated that many people may never reach this level of abstract moral

reasoning.[7][8][9]

In Stage five (social contract driven), the world is viewed as holding different opinions, rights and values.

Such perspectives should be mutually respected as unique to each person or community. Laws are

regarded as social contracts rather than rigid edicts. Those that do not promote the general welfare

should be changed when necessary to meet the greatest good for the greatest number of people.*8+

This is achieved through majority decision, and inevitable compromise. Democratic government is

ostensibly based on stage five reasoning.

In Stage six (universal ethical principles driven), moral reasoning is based on abstract reasoning using

universal ethical principles. Laws are valid only insofar as they are grounded in justice, and a

commitment to justice carries with it an obligation to disobey unjust laws. Legal rights are unnecessary,

as social contracts are not essential for deontic moral action. Decisions are not reached hypothetically in

a conditional way but rather categorically in an absolute way, as in the philosophy of Immanuel

Kant.*17+ This involves an individual imagining what they would do in anothers shoes, if they believed

what that other person imagines to be true.[18] The resulting consensus is the action taken. In this way

action is never a means but always an end in itself; the individual acts because it is right, and not

because it is instrumental, expected, legal, or previously agreed upon. Although Kohlberg insisted that

stage six exists, he found it difficult to identify individuals who consistently operated at that level.[14]


12/13

2.Corporate govenance

What is corporate governance

Corporate governance is "the system by which companies are directed and controlled" (Cadbury

Committee, 1992).*1+ It involves a set of relationships between a companys management, its board, its

shareholders and other stakeholders; it deals with prevention or mitigation of the conflict of interests of

stakeholders.[2] Ways of mitigating or preventing these conflicts of interests include the processes,

customs, policies, laws, and institutions which have impact on the way a company is controlled.[3][4] An

important theme of corporate governance is the nature and extent of accountability of people in the

business, and mechanisms that try to decrease the principalagent problem.[5]

Principles of Corporate Governance

Rights and equitable treatment of shareholders:[10][11][12] Organizations should respect the rights of

shareholders and help shareholders to exercise those rights. They can help shareholders exercise their

rights by openly and effectively communicating information and by encouraging shareholders to

participate in general meetings.

Interests of other stakeholders:[13] Organizations should recognize that they have legal, contractual,

social, and market driven obligations to non-shareholder stakeholders, including employees, investors,

creditors, suppliers, local communities, customers, and policy makers.

Role and responsibilities of the board:[14][15] The board needs sufficient relevant skills and

understanding to review and challenge management performance. It also needs adequate size and

appropriate levels of independence and commitment

Integrity and ethical behavior:[16][17] Integrity should be a fundamental requirement in choosing

corporate officers and board members. Organizations should develop a code of conduct for their

directors and executives that promotes ethical and responsible decision making.

Disclosure and transparency:[18][19] Organizations should clarify and make publicly known the roles

and responsibilities of board and management to provide stakeholders with a level of accountability.

They should also implement procedures to independently verify and safeguard the integrity of the

company's financial reporting. Disclosure of material matters concerning the organization should be

timely and balanced to ensure that all investors have access to clear, factual information.

How it is helpful to stakeholder

Corporate governance also includes the relationships among the many stakeholders involved and the

goals for which the corporation is governed.[6][7] In contemporary business corporations, the main

external stakeholder groups are shareholders, debtholders, trade creditors, suppliers, customers and

communities affected by the corporation's activities. Internal stakeholders are the board of directors,

executives, and other employees. It guarantees that an enterprise is directed and controlled in a


13/13

responsible, professional, and transparent manner with the purpose of safeguarding its long-term

success. It is intended to increase the confidence of shareholders and capital-market investors. [8]

What is business ethics

Why it is made compulsory for b-school

ethics intro

Documents