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Business Ethics: Bedrock Of Good Corporate Governance

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A. Individuals should be encouraged to learn what personal ethics means and set their own boundaries according to personal ethics when they have to decide what actions would have to be taken in ambiguous situations. They also have to have right morals and values, so that they know what are considered to be ‘right’ and ‘wrong’ personally or subjectively. Individuals should ask themselves when making decisions if they are making legal decisions. If the decisions are not legal, then they have to reconsider the decisions.
B. Organizations can make use of utilitarianism when taking business decisions and dealing with clients, customers, employees, and other stakeholders. Utilitarianism allows the business to conduct its operations in the way that …show more content…

Business ethics is the bedrock of good corporate governance. Business ethics guide organizations how to set appropriate and right norms and principles of behavior that are accepted in the businesses. It also often refers to organizational code of conduct. Good corporate governance includes business ethics as well as organizational governance structures and processes. In South Africa particularly, we use the third King Report on Governance for providing effective measures for sound governance. Therefore business ethics forms part of good corporate governance.
2. A. Stakeholders fit into the definition of business ethics.
B. Stakeholders include organizations’ directors, customers, employees, trade unions, government, suppliers and the community around them. Therefore it is crucial that a business maintains a good relationship with its stakeholders as they can have a big influence on the image of the business. They are affected by the operations and actions taken by the organizations.
3. South Africa, despite it being a democratic country, is quite well-known for its corruption issues. Corruption in the organizations also happens a lot. Therefore it is of utmost importance that there is the Social and Ethics Committee in the company. By setting the Social and Ethics Committee in the organization, it …show more content…

The principles are values that are to be upheld by the members. Those principles include integrity, professional behavior, objectivity, confidentiality and professional competence and due care. The three principles that I would like to discuss are integrity, objectivity, and confidentiality. Integrity is the quality of being trustworthy and honest and also having strong moral values. Therefore it is crucial for the members to have integrity as accountants and auditors should present the organization’s financial statements and reports in honest, trustworthy ways and relevant to the organization’s stakeholders. The statements can make a difference in the stakeholders’ economic decisions, therefore, it is important that they are presented with integrity. Objectivity could also refer to independence. It is the quality of being unbiased, unjudged and independent so that the members make decisions that do not contain any prejudice or bias. Presenting information in an objective way can help the stakeholders to make clear, unjudged economic decisions. Also, the information without bias will be fair to all stakeholders, which is one of the decision - making tools an organization can make use of. Confidentiality is an important quality that professionals must have. It is the quality of being able to hold secret all information relating to the stakeholders unless they permit the disclosure of the information. The

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