If corporate governance acts as a framework under

any organization lingers on its ability to mobilize and utilize all kinds of
resources in order to meet the objectives, then the probability for the success
of this organization increases multiple times especially when these are clearly
set as part of the planning process. There are two factors, internal and
external and managing well depends on both of them. External factors include availability,
cost effectiveness and technological advancement. But in today’s world, as the
quality and transparency is decreasing it has resulted in the adaptation of internationally
accepted ‘Best Practices’. The acceptance of these Best Practices gave rise of
‘Corporate Governance’. It is a concept that encompasses commitment to values
and to ethical business conduct in order to maximize shareholder value and
while doing so it also ensures fairness to all stakeholders at large. If
one talks about “Corporate governance” as a system, then one can refer to as
something through which any company can make its policy decisions and manage its
affairs. When any organization needs to take a corporate decision then
corporate governance acts as a framework under which any moral or ethical
decision is taken. But in some of the cases mostly due to the lack of
transparency, frauds take place, directly or indirectly impacting the factors
affecting that organization. Most of these frauds happen because of unethical
practices done by stakeholders that take place in that company. When
various stakeholders like customers, employees, investors, vendor partners,
government and society come together the system is commonly known as a
corporation. It needs fulfill certain basic qualities as in general it should
be fair and transparent to all the stakeholders who are involved, and this
should not only be limited for a single transaction but for every transaction
that takes place. Ethics
is basically an inception of two kinds of behavior which might be right or
wrong and these types of behaviors defines our actions which can be either
moral or immoral. The prime motive behind any kind of ethical reasoning is to
sort or differentiate out the good and bad components within any interaction be
it human or non-human. “Business ethics is the art and discipline of applying
ethical principal to examine and solve complex moral dilemmas.” It proves that
any business done can be two things at a same time – ethical and profit making.
Talking about ethics, it is a word which is derived from a Greek word “ethocos”
which means custom or character. This is defined as the science of morals which
describe a set of rules of behavior. Being concerned with the norms of the
human conduct, ethics is also considered a normative science. It is completely distinguished
from formal science such as mathematics, logic, physical science such as
chemistry and physics. Ethics should also follow some rigors of logical
reasoning as other sciences. Ethics on the other hand is also closely related
to trust. Ethical behavior is necessity to gain trust and as a result the same
trust will be used as an indicator variable. In India corruption is one of the
biggest problem to tackle as well as it is an all-embracing phenomenon. In this
scenario, if the respective players in the field adopt healthy practices of
good corporate governance and avoid corruption then India can really become a
less corrupt country and improving its global rank in corruption. Ethical
conduct in business is probably the most important thing in Corporate
Governance. It is all about values and principles which enables a person/ company/
organization to choose what is the difference between right and wrong, and because
of this we get to select from alternative courses of action for the set
objectives of an organization. Furthermore, when we talk about ethics, ethical
dilemmas play an important role as they arise from conflicting interests of the
parties involved. In this context, the people who are responsible to make
decisions based on a set of principles are influenced by the values, context
and culture of the organization. Another concept that involves ethics is Ethical
leadership. It is something that has been called good for the business as
because of its presence the organization is seen to conduct its business in
line with the expectations of all stakeholders. As the circumstances of a
company change with time and other external or internal factors, a good
corporate governance will constitute a mechanism to evolve which would be
tailored to meet the changing circumstances. These changes have made people believe
in the fact that there are no fixed models of Corporate Governance.


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