Ethical issues in corporate governance principles: with reference to directorsʼ duties
Corporate governance is about how a company is being controlled and managed in the interests of its shareholders and stakeholders. Codes of corporate governance embody rules of conduct and best practices which are directed to the controller of the company i.e. the board of directors. Corporate...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Eubios Ethics Institute
2010
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/23691/ http://irep.iium.edu.my/23691/ http://irep.iium.edu.my/23691/1/Ethical_Issues_in_Corporate.pdf |
| Summary: | Corporate governance is about how a company is
being controlled and managed in the interests of its
shareholders and stakeholders. Codes of corporate
governance embody rules of conduct and best
practices which are directed to the controller of the
company i.e. the board of directors. Corporate
governance principles have been introduced to
enhance accountability and transparency in a
company. In most circumstances these are reflected
in the duties and responsibilities of the directors as
stated in the relevant statutory provisions. On the
other hand, ethical issues in business corporations
relate with integrity, honesty and fairness. This paper
intends to highlight and examine the ethical elements
in those statutory provisions which have been
legislated based on corporate governance principles.
The study would be focused on directorsʼ fiduciary
duty and duty of care. It would look beyond corporate
social responsibility practices which have often been
described as companyʼs ethical duty. It is perceived
that those duties stated in the statutory provision had
imposed ethical behavior upon the directors. Hence,
the corporate governance principles which emphasis
on accountability and transparency had actually been
mooted from values such as integrity, honesty and
fairness. The main terms of reference of this paper
are corporate governance principles, directorsʼ duties
and ethical issues. Research methodologies adopted
are doctrinal and statutory analysis. |
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