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7) What do you understand by corporate governance? How can ethics make corporate governance more meaningful? Explain. (250 words)

Topic: corporate governance.

7) What do you understand by corporate governance? How can ethics make corporate governance more meaningful? Explain. (250 words)

Ethics by Lexicon

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Why this question:

The question is intended to evaluate the role of corporate governance in successful and ethical management of companies and corporations.

Key demand of the question:

The answer is straightforward – one has to discuss the concept of corporate governance, its role, significance etc.

Directive word:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

Structure of the answer:

Introduction:

In a few introductory lines define what is corporate governance.

Body:

  • Explain – Corporate governance is meant to run companies ethically in a manner such that all stakeholders—creditors, distributors, customers, employees, and even competitors, the society at large and governments—are dealt with in a fair manner.
  • Discuss the aspects of Good corporate governance – that it should look at all stakeholders and not just shareholders alone.
  • Discuss the need for understanding ethical behavior in the context of corporate governance.
  • Justify the above points using a suitable case study to highlight the need for ethics in corporate governance to make the governance more and more meaningful.

Conclusion:

Conclude with importance of ethics and its significance to the corporate governance.