Corporate Governance and Ethics Essay

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Introduction In this decade corporate governance and finance has been affected by the dot-com world, the Enron scandal and new legislative ruling that have affected financial industries and the government. Due to these scandals there has been a need to create internal codes of conduct and apply them to members that serve on board of directors and in top management positions to help uphold their reputations, ethical behavior and the integrity of the corporations they work for. Not only are top official expected to behavior in an ethical manner, it is important to note that workers within corporations are expected for follow a code ethics to maintain their integrity within the business world. (New York Stock Exchange, 2003). In the corporate world, business ethics is an important factor in corporate social responsibility, and corporate governance is an important factor in an organization’s approach to corporate social responsibility and business ethics. Therefore, it is important that boards of directors develop and implement ethical codes within their organizations. With the recent disasters with the West Virginia coal mine explosion and the BP oil spill held the CEO and board of directors responsible for severely comprising their oversight in the tragedies. It was argued that the board had inadequately supervised the handling of safety issues. Because of these types of tragedy’s, companies need to consider the activities of board oversight and its CEO’s to ensure they are meeting safety record and their division of responsibilities to help avoid future events. Companies should revaluate and re-examine the corporate governance practices and performance to determine if there are changes that could be made to help them to full their roles and responsibilities in a more effective manner. These evaluations should not only apply to large corporations, but all

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