Corporate governance comes into play in cases where the management of the organization has to be carried out by a manager or a group of managers who are not the owners of the organization. In essence, corporate governance is implemented by a business’ financers in order to monitor and regulate the organization’s utilization of its investments. In this case, the individuals hired to manage the business are paid employees and are responsible for the effective execution of the organization’s processes. As a result of this arrangement, it is only natural for a separation to exist between the ownership of the organization and the management of the organization. While this may appear to be a simple concept, modern-day business models have allowed corporate governance models to develop rapidly over the last few years and this has led to the development of different corporate governance models. The implementation of these corporate governance Continue reading
Business Ethics
Blending Spiritual Values with Business
The root for value is valor, which means strength. Values are sources of strength because they give people the power to take action. Values are deep and emotional and often difficult to change. Values are the essence of any organization and philosophy for achieving success. Values provide employees with a sense of common direction and guidelines for day to day behavior. The first step in creating an atmosphere of common commitment is to invite the hearts and minds of employees to join the purpose of the organization. Shared missions, values and vision bring people together. They unite and provide the link between diverse people and activities. People who share values or vision are more likely to take responsibility; they are more likely to challenge the limits of convention. Values provide guidance. Spiritual value is a way of expressing more humanity and recognizes each persons own beliefs. Traditional ways of achieving Continue reading
Case Study on Ethics: The Google Antitrust Case
Google Inc. started two decades ago as a Silicon Valley startup with an innovative way of accessing the Internet. The company is headquartered in Mountain View, CA, and came into the business world in 1997, one year after it was established with its shares offered to the public in 2004 in the most unusual online way. Currently, Google is one of the search engines that are frequently used around the world, which has enabled the company to further raise its market share. The main product of Google is the search engine, which has enabled it to have global dominance. In addition, the company has other products such as Google Maps., Chrome Browser, Google Drive, YouTube, Play Store, Gmail, and the Android operating system. However, it is worth noting most of the above-named products are offered free of charge to Google users, but customers have to pay to access premium product features. Continue reading
Why Integrity, Ethics and Core Values are Necessary in Business?
Today’s business environment faces many problems such as exploitation of resources, fraud, unfair trade practices etc. The basic reasons behind these problems are lack of integrity, ethics and core values in business. Integrity, ethics and core values helps to protect the interest of all stake holders, increase the goodwill of the company, earn more profit and minimize the regulations. So integrity, ethics and core values are essential for the survival of a company. So every organisation should have these qualities. This will bring many advantages to the organisations and will help to increase the trust of society and government in the company. Integrity Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one’s actions. Integrity can be regarded as the opposite of hypocrisy, in that it regards internal consistency as a Continue reading
Aligning Business Ethics and Corporate Social Responsibility
History tells us that ethics generate trust. But before anything else, ethics create a reputation, which in turn develops the elements of trust between people. The thrust of intensive ethical attention in business is brought about by the growing power of consumers towards businesses. Gone are the days when they would just buy products based on what it offers because now they would likely care about the brand’s practices. Consider the impact of Nike’s marred reputation on its economic activities when unethical workplace environments and practices were made public. The company was quick to decide on what it should do to the situation, which is to gain public trust again through public showmanship of ethical efforts. Although ethical choices are unavoidable and ethics is inescapable even in business, the intensity of such phenomenon has increased due to the growing concern on the collective impact of a business’ unethical action. The Continue reading
The Significance of Corporate Governance
Corporate Governance can be defined as the organizational structure of a company. It encompasses the overall processes, operations and policies by which a company is controlled and functions. According to James McRitchie corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. Within the governing body of a corporation there are various stakeholders. Stakeholders are individuals which are of great importance to the company because they contribute directly or indirectly to its economic activity. Stakeholders retain different degrees of importance within an organization depending on their title or function which are some of the following: shareholders, the board of directors, employees, customers, creditors and suppliers. All together this group of individuals defines a corporate community in which day to day business is conducted and must be sustained in order for the company to survive. Similar to any other community, where there Continue reading