A company’s leadership is also involved training to handle the unethical dilemmas. An environment that practices ethical leadership, must have written codes of ethics on which an organization’s culture get to develop. Ethical compliances are also involved in the development of corporate social responsibility. Recommendations Although L’Oreal is ranked as one of the top ethical organization, there is always a placed to improvement. Here are some recommendations for the company that can improve the ethical leadership practice in the company.
Corporate governance refers to the way through which society can ensure that large corporations are well-run institutions to which investors and lenders can confidently commit their funds. It creates safeguards against corruption and mismanagement of the board and provides sincere commitment in creating and sustaining an ethical business culture in public and private sectors. Corporate governance policies, norms,
It is one of the essential pillar for building efficient and sustainable environment. Corporate Governance is based on the principles of integrity, fairness, equity, transparency, accountability and commitment to values. Good governance practices stem from the culture and mindset of the organization. Effectiveness of the Corporate Governance in a Company depends on regular review, preferably regular independent review. As stakeholders across the globe evince keen interest in the practices and performance of companies, Corporate Governance has emerged on the centre stage.
It is bridge and communicates the company with the external parties and will be the measurement to determine the performance or outcome of the company (Norwani et al., 2011). The integrity of financial reporting reliance on corporate governance. The failure of corporate governance led to failure in financial reporting (Norwani et al., 2011). Good Corporate Governance is a corporate set up leads to maximize that value of the shareholder, legally, ethically and on a sustainable basis, while ensuring equity and transparency to every stakeholder: the company customers, employees, investors, vendor partners, the government of the land and the community (Murthy, 2006). Corporate governance became a determinant to many subjects in identifying company’s strengths and functions.
Through accounting data a company can have an accurate picture of their overall financial position and can have a track of their income and expenditures. Accounting profession plays a huge role in helping the company’s operations to run smoothly on a ethical, legal and practical basis. This can become a strong foundation in company’s continued growth and success. Accountants have become the rule checkers and the role of accounting profession is very critical to corporate governance and has now become the primary source of information to many stake holders of the company. Accountants should carry their tasks in a professional and ethical way as many investors rely on accounting reports.
Corporate Governance as stated in the statement above, function as agents of shareholders, within the corporate governance ecosystem. Shareholders who exercise their rights as shareholders, directly influenced the boards, can ensure responsible actions by companies. Gatekeepers and influencers, insinuated between the shareholders and company, play an important role in promoting self and market discipline, hence in reducing the need for regulatory discipline. Last but not least, private and public enforcement have an important role in ensuring that corporate governance are held accountable through actions by the regulators parties. Proactive actions by the various parties is crucial and this reinforces the corporate governance culture and ultimately
According to White (2012), the responsibility is to operate ethically, and by doing so, ensuring that the goods, services and operations offered by the company are safe for individuals and the environment equally. The author further argues that it also gives the opportunity to businesses to meet different consumer needs and demands, to build top-line business, to reduce costs efficiently, to increase employee’s motivation level, and to deliver greater value to both society and shareholders in particular. Most importantly, the key objective behind is to shape a solid and viable corporate sustainability and to have it owned by the business, rather than presenting it as an additional activity. On the other hand, Weber (2017 cited Lin et al., 2015; Sharma and Vredenburg, 1998) share the view that the strict adherence to corporate sustainability guidelines and practice definitely gives companies a competitive advantage that subsequently helps them to outperform their competitors
In simpler terms, business ethics fundamentally epitomizes the organization 's codes of corporate governance. It stipulates the morality standards and behavioral patterns expected of individuals and the business as a whole. These moral benchmarks can be perceived in terms of the microenvironment and macro environment of the business. MEANING OF ETHICS: The terms ‘moral’ and ‘ethical’ are often used equivalent to ‘good’ or ‘bad’ and as opposed to ‘immoral’ and ‘unethical’ Frankene, (1993). Ethics is defined by Miner (1998) as a philosophy of human conduct; reflecting prevailing values especially that moral
The interactions are important in order to ensure the objective of corporate governance can be achieved which can provide benefits to all the participants. The essential element that wants to be emphasizing by the implementation of corporate governance is the elements of transparency within the companies or institutions. The transparency elements will safeguard the interest of all shareholders without distinguish majority shareholder or minority shareholder. The implementation of corporate governance will ensure that all shareholders fully practice their right. Besides, Corporate Governance is also emphasis the elements of trustworthy, moral, and ethical environment.
Survival and Existence of a Company depends upon how responsible a Company is towards the Welfare of the Society. More active a Company is, it is easier for them to build a healthy Brand Image in the eyes of customers which leads to working towards building Brand Equity. Different concerns have different definitions of Corporate Social Responsibility (CSR) like, “The continuing commitment by business to behave ethically and endow to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” – World Business council for sustainable Development. “The clear definition of Corporate Social Responsibility is that community is not just another stakeholder in our business but the very purpose of our existence,” – Jamshedji Tata. Greater number of the private companies says that they grasp Corporate Social Responsibility (CSR) not only because it reinforces their Brand, but also it is the right thing to do.