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Advantages And Disadvantages Of The CG Chain

Decent Essays

Figure 2B: Advantages and Disadvantages of CG From Figure 2A above, shows certain issues are highlighted by the CG chain such as: To whom are executives responsible? Who are the shareholders? What is the role of institutional investors? And what means of scrutiny and control exist? Moreover, the reasons for imperfect operation of the CG chain which are: Lack of clarity on end beneficiaries; unequal division of power; different levels of access to inform; self-interest among agent and measures and targets that reflect agent self-interests rather than those of end beneficiaries

What is ethics and why is Ethical Behaviour important to FIs?

Ethics- is defined as the moral principles and values that govern a person’s behavior or the conduct of activity. The basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for healthy and safety and, increasingly, also for the natural environment. Meanwhile, ethical behaviour is the exhibition of decent human conduct with morality while demonstrating respect in ways consistent with society values which tends to be good for business. Perhaps, …show more content…

The proper practice ethical behaviour is vital, as it leads to the significant and effective work ethics and consequently good corporate governance programmes. Hence, the practice of proper ethical standards is more relevant issue of good corporate governance in the present competitive era as the standards provide a useful mechanism to restructure the core corporate values- (see

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