Ethics And Ethics: The Purpose Of Corporate Governance

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1. What is Ethics? Originating from the Ancient Greek word ‘ethikos’ deriving itself from ‘ethos’ meaning ‘belief’, ‘customs’, ‘habits’, the concept of ethics determines good and/or bad practices and essentially refers to a code of conduct or a set of moral principles and standards governing a group or an individual’s behaviour and/or activity. It can be defined as: "a social, religious, or civil code of behaviour considered correct, especially that of a particular group, profession, or individual" - Collins dictionary 2. What is Law? Aristotle stated that “Law is order, and good law is good order” (Aristotle, Politics) Historically, philosophers and intellectuals over centuries have struggled with a set definition of what law is. When…show more content…
a. Purpose of Corporate Governance: Corporate governance as it stands appears to be fundamental to all entities across the board whether they are commercial entities or not for profit organisations as they are all affected by the principles of corporate governance. The purpose of corporate governance is not just to monitor, it is also to provide guidance to those in charge of running companies, board members, managers, shareholders etc. to operate, act ethically and responsibly. It also attempts to bring accountability to the fore, making provisions to safeguard against the misuse of resources whether those resources are identified as financial, human capital or intellectual property. b. Theories and…show more content…
What is corporate strategy? “Corporate strategy is a complete plan of action encompassing all the activities and functions performed by business firms. The plan covers all the objectives of the company related to the allocation of resources and coordination among different levels.” Corporate Strategy as a framework began to be developed in the 60’s and the 70’s where for the first-time companies had to think in a systematic and integrated way about their costs, competitors and their customers. In the mid 80’s and beginning of 90’s, corporate strategy started to focus on process engineering, re-engineering, thinking more systematically about world-wide expansion and therefore globalisation but at the same time it also focused on a more granular aspect and migrated down to the industry by industry. Nowadays, corporate strategy is about participating in different business units and is defined as a process of diversification across structurally different industries. It is about participating in multiple businesses grouped under a corporate parent and creating common strategic unifying
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