Corporate Governance And Business Ethics - Two Sides Of The Same CoinWithout rules, guidelines and policies working systematically the door to corruption, unethical and criminal behavior would be left open. This is why most business leaders try hard to maintain a system of corporate governance and business ethics. Not only does this program enable organizations to maintain good customer and investor relationships but also helps them earn their goodwill in the market. Even though the implementation of a corporate governance and business ethics program is expensive, a number of business persons have understood that not having this system in place could be detrimental to the entire organization. The program would help the organization avoid corrupt dealings and actions of employees as well as managers. It would also assist the businesses maintain their integrity in the eyes of the public. An effective corporate governance and business ethics program would include not only the training of the employees but also of those in power. A strong ethics program would establish a code of conduct that would gradually reduce the risks of criminal behavior in the organization. This would help the CEOs demonstrate ethical behavior to the management and thereby make the organization successful. Success comes easily once the program is able to foster an environment wherein the subordinates feel free to report any unethical behavior of their peers or even seniors. Nevertheless, organizations must remember that a corporate governance and business ethics program involves a relationship between owners, investors and managers. Not only would a volatile relationship between the investors and owners cause poor morale, but could also be detrimental to the finances of the organization. Therefore, the set of rules and guidelines being incorporated in the program must be such that they do not make this relationship unstable. Usually, it is the high level executives and CEOs that are under profound scrutiny once it comes down to the stability of relationships with investors and their business ethics. Strong evidences of the past have proven that unethical practices of the business would definitely catch up with the company or organization sooner or later. That is why organizations implement corporate governance and business ethics for their top management so that they can exemplify ethical behavior to their subordinates. A program of business ethics and corporate governance must be proactive and should be able to address and issue long before it actually becomes an issue. It is probably the most effective way for organizations to eliminate negative behavior that can possibly harm the reputation or work environment of the company. In fact, organizations that take their corporate governance and business ethics program seriously are able to make healthy profits as well. |