Question one :
Definition Business
ethics?
"Business
ethics" can be defined as the critical, structured examination of how
people & institutions should behave in the world of commerce. In particular,
it involves examining appropriate constraints on the pursuit of self-interest,
or (for firms) profits, when the actions of individuals or firms affects
others. Business ethics also the study
of business situations, activities, and
decisions where issues of right and wrong are addressed. Business ethics study of proper business policies and
practices regarding potentially controversial issues, such as corporate
governance, insider trading, bribery, discrimination, corporate social
responsibility and fiduciary responsibilities. Business ethics are often guided
by law, while other times provide a basic framework that businesses may choose
to follow in order to gain public acceptance.
Why business ethics is
considered “ oxymoron “ ?
by
oxymoron, we mean the bringing together of two apparently cntradictory concepts
like cherrful pessimist or deafening silence.
businesses can and do act ethically. and they do
so because good, ethical behavior is the best long-term strategy for a company.
that's not to say that ethical behavior always pays off financially or that
unethical behavior is always punished. actually, doing the right thing can
sometimes be quite costly for a business, and doing something unethical may pay
off, at least in the short term. what we mean by "the best long-term
strategy" is that for the most part and over the long run, acting
ethically can give a company a significant competitive advantage over companies
that do not act ethically.
Question two :
What is Corporate Governance?
Corporate Governance refers to the way a corporation is governed. It is
the technique by which companies are directed and managed. It means carrying
the business as per the stakeholders’ desires. It is actually conducted by the
board of Directors and the concerned committees for the company’s stakeholder’s
benefit. It is all about balancing individual and societal goals, as well as,
economic and social goals.
Corporate Governance is the interaction between various participants
(shareholders, board of directors, and company’s management) in shaping
corporation’s performance and the way it is proceeding towards. The
relationship between the owners and the managers in an organization must be
healthy and there should be no conflict between the two. The owners must see
that individual’s actual performance is according to the standard performance.
These dimensions of corporate governance should not be overlooked.
