The Ethics Of The Corporate Governance

Good Essays
The Corporate Governance refers to the mechanisms, rules and regulations in which companies and governing bodies are put into task on various occurrences under their performance. It can be said to be a guideline which directs how companies achieve their objectives and more so how these objectives are set. In this case, abiding to the ASX corporate Governance Council has its merits and limitations at the same time. By abiding to the principle of laying solid foundations for the oversight and management, the merits in this case is the separation and clear allocation of duties to both junior staff and directors or seniors (Swan, 2014). By this there will be minimal conflicts and misunderstanding in execution of the duties by different players. However, by disclosing the process and manner in which the senior executives are evaluated, this can lead to the compromise of the whole process since the senior executives based on their vast knowledge may influence the outcome skewing the results to be positive.

By abiding to the principle of promoting ethical and responsible decision making, the principles of integrity, responsibility and accountability are boosted. This ensures stakeholders confine themselves to the set guidelines or principles to minimize situations where they find themselves breaking the law. In addition to this principle encourages gender parity and boosts chances for women to be considered in both executive and subordinate positions. On the other hand,
Get Access