A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that
Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace. This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization.
Chemerix should have a comprehensive code of conduct. The most important factor for a company to promote moral behavior is a complete list of codes of conduct. It plays as a guideline, and helps the company to make ethical decisions, and solve ethical dilemmas. As a result, following a well-structured code of conduct increases the reputation of the company, and prevents negative financial effects due to legal issues. Companies should make sure that employees read and understand the requirements of their organization 's code of conduct.
Weber’s bureaucratic principles states that an organization should have written rules, hierarchy of authority, system of task relationships and fair evaluation and reward. Refer to Figure 4 below. Explaining Weber’s bureaucratic principles, authority should be clearly defined as this would allow the managers to supervise and control their subordinates in an organization. Rules and regulations should be clearly specified in form of Standard Operating Procedures (SOP) to ensure that activities are performed in a particular manner which will facilitate coordination. Position and duties should be clearly specified, this would allow employees to know what is expected of them based on their expertise.
What is corporate compliance? Compliance - The word compliance is defined as the act of adhering to or conforming to a law, rule, demand, or request. In a business environment, conforming to the laws, regulations, rules and policies is a very important part of business operations often referred to as "corporate compliance." Corporate compliance involves keeping a watchful eye on a fast-changing legal and regulatory climate, and making the changes necessary for the business to continue operating in good standing within its industry, community, and customer base. In a broader sense, corporate compliance extends beyond mere legal and regulatory conformity into the realm of promoting organizational ethics and corporate integrity.
Such policies and procedures should include the following: a. Matters relevant to promoting consistency in the quality of engagement performance. b. Supervision responsibility. c. Review responsibilities .36 The firm’s review responsibility policies and procedures should be determined on the basis that suitably experienced engagement team members, which may include the engagement partner, review work performed by other engagement team members.
2.5 When A System Of Internal Control Is Believed To Be Effective Both applied internal control systems like COSO framework and laws governing the issue of internal control systems namely Sarbanes-Oxley Act (SOX) are interested in expressing a professional opinion with respect to the effectiveness of internal control systems. On one side, COSO framework considers the board of directors and the judgment practiced by the board of directors and top management within the boundar¬ies established by laws, rules, regulations, and standards as the main factor effecting the design, implementation, and the assessment of the effectiveness of internal control systems. However, this practiced judgment is exhibited in the form of obtaining reasonable assurance relative to the application of such internal control system within the entity structure in a manner that its operations are functioning effectively and efficiently when external events are either considered likely or unlikely to have
Thus, every company or business must show the proper and right etiquettes it should have, so that the customers will have that kind of trust and a good feedback on your company. Being an ethical business captivate and keep employees, stakeholders, and employees as they consider knowing
Step One: Establish Explicit Ethical Goals and Criteria: When formulating integrity continuity plan, we need to define a clear and precise goals and behavior criteria. The codes should be vividly stated with no ambiguity: what are the expectations from un employee in terms of ethical and legal acts. Steps Two: Demonstrate Commitments to those Ethical Goals and Criteria It is quite imperative for cods to be as clear as possible and has to demonstrate the importance of the code to be executed with out fail. And for employee who show commitments need to be rewarded. On the same token, in the event an employee fails to adhere to the code need to be taken a corrective measure accordingly.
Character is an essential ingredient in ethical leadership. It is also important in mangers and CEO’s. According to Uhl-Bien, Schermerhorn and Osborn (2014), “the ethical leadership theory describes that leaders should be role models of appropriate behavior” (p.321). As a leader whether you are a CEO or a manger, you should have certain characteristics whether it is honesty and respectfulness. Managers and CEO’s should have a positive character because they influence others.
It is important for a company to take into consideration and be responsible to the needs of all organization’s employees and other economic agents because it can give serious impact for the future of an organization. The organizations also should run their business ethically in order to earn the respect of others and can be a trustworthy. Any organizations who want to win trust are by providing transparent information, making no secret of their strategies, and being accessible to the wishes