Abstract
Good corporate governance is important in management of all organizations. It gives direction to an organization in matters of accountability, integrity and quality of product and service offerings in the wake of stiff competition and conflicting stakeholder interests. Business challenges and realities create conditions that favor governance failure through unethical conduct hence the need for regulations in addition to self-governance. Business ethics in business and manufacturing helps organizations in making ethically critical decisions. Corruption is a significant indicator of governance failure and involves illegal activities, criminal activities that are both financial and non-financial abuses and benefits. Corporate governance should provide a framework upon which organizations are hence creates order and harmony between various stakeholders. Good corporate governance improves organization’s image as a self-policing institution that is responsible and honest. Whereas self-regulations looks more attractive for free market economies, legislation and control is necessary since not all managers believe and act within good corporate governance. The board of directors should set the strategic objectives and provide leadership for realization and supervise the management and report to shareholders on their leadership. The Enron Corporation and Volkswagen scandals demonstrated that severe consequences result from failed corporate governance in form monetary and non-monetary that affect both perpetrators and the innocent. Where corporate governance fails, major indicators include, manipulation of financial records, corruption, poor quality products and exaggerated quality specifications in manufacturing and engineering, high staff turnover, lack of transparency and accountability, poor stakeholder relationship, poor performance and low economic development leading widespread poverty and social disorder. External enforcement should be considerate to genuine stakeholder interests to avoid legislation that will encourage cheating for survival. Perpetrators of governance failure, should be punished both as individually and as organizations to set an example to others in the form of penalties that are reasonably high to discourage noncompliance.
Highlights
Introduction to Corporate Governance and BusinessEthicsCorporate governance refers to rules, processes, and practices that are enforced to direct and control a company or organization
Iii.) It is hard to separate good corporate governance and ethical values and principles of managers and employees any effort to put in place good corporate governance should be grounded in good ethical standards and principles
V.) It is values that lay the foundation of good corporate governance besides institutional arrangements that enhance transparency and accountability in corporate leadership and management, and so institutional arrangements should be put in place to enforce correct value systems within an organization
Summary
Introduction to Corporate Governance and BusinessEthicsCorporate governance refers to rules, processes, and practices that are enforced to direct and control a company or organization. Automotive emissions are a significant contributor to environment pollution and from greenhouse gas emissions which lead to global warming and health issues In response to this scenarios, various countries have put in place stringent environmental controls whose aim is to at limit emission of these harmful products like oxides of nitrogen, Sulfur dioxide and other greenhouse gases. All seemed to going on well with enforcement until the end of 2015 when automotive industry was shocked by announcement of the unethical conduct by Volkswagen Corporation with regard to these pollution control measures and limits in its bid to bypass them This is what came to be the Volkswagen scandal, a scandal that shook the automotive industry and regulators globally who put in place measures and penalties that proved very costly to Volkswagen and a number of employees involved in the scandal. ICCT partnered with researchers from West Virginia University to test the Volkswagen vehicles for emissions
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