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Corporate Goverance and Code of Ethics - Article Example

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Name: Course: College: Tutor: Date: Corporate Governance and Code of Ethics Corporate governance is a term that is broadly used to refer to the set of laws, customs, rules or policies and processes that forms the basis of the relationship between the managers, shareholders, suppliers, employees as well as other business stakeholders…
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Corporate Goverance and Code of Ethics
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Corporate Goverance and Code of Ethics

Code of ethics is designed to make employees make fair and moral choices in discharging their duties. This essay will focus on the role of corporate governance in creation and adoption of corporate code of ethics. It is factual that the quality of management in an organization is determined by the effectiveness of its system of corporate governance. Proper corporate governance should aim at bringing onboard honest and competent employees. Besides, it should be geared towards instituting a framework that will ensure adequate employees compensation so that they are motivated to give their best to the company. Main Issue of the Article Corporate governance together with codes of ethics plays a crucial role in the success of a business because it shapes the way the company is viewed by the stakeholders. This article shall focus on the factors that influence the creation and adoption of corporate code of ethics by a firm as well as those that determine its effectiveness. Some of these factors include the effects of the board diversity, board stock ownership and the constituent of the board directors on the creation of the corporate code of ethics. Relationship to the Course High profile scandals that involves corporate officers have in the recent years led to an increased attention on the subject of corporate governance. ... Read More
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