Business ethics and corporate governance book pdf
Business Ethics and Corporate Governance, Second Edition [Book]Since the origin of commerce, the ethical basis of business has been in question. In the ancient Greek civilisation Aristotle could readily distinguish between the basic trade required for an economy to function, and trade for profit which could descend into unproductive usury Solomon , Most major world religions cast a sceptical eye on business, including Christianity, Islam and Confucianism. As technological change advanced with the industrial revolution, there occurred a wider diffusion of ownership of many large companies as no individual, family or group of managers could provide sufficient capital to sustain growth. However any hope of a wider sense of fiduciary duty in corporations was eroded away in the later decades of the twentieth century in the Anglo- American world, as capital markets became more aggressive and unstable, and executive compensation was propelled upwards by stock options. A succession of cycles of booming economies, followed by market collapse and recession, culminated in — in the first global financial crisis, which was also a crisis in governance and regulation.
Corporate Governance and Ethics
Course Objectives. To make students understand the importance of Ethics. To make students aware of good Business and Corporate Governance. Module 1 Introduction to Ethics. Module 2 Ethical Aspects. Module 3 Ethics in Functional Areas. Module 4 Corporate Governance.
Business ethics means the application of ethics in business Definition of Business Ethics: Business Ethics is a specialized study of moral right and wrong. It concentrates on moral standards as they apply particularly to business policies, institutions, and behavior. Characteristics of business ethics Differ with persons: ethical questions do not have a unique solution but a multitude of alternatives Ethical decisions are not limited to them, but affect a wide range of other situations as well. Ethical decisions involve a tradeoff between cost incurred and benefits received. Consequences are not clear Every person is individually responsible for the ethical or unethical decision and action that he or she takes Ethical actions are voluntary human actions. Why is ethics important in business? Ethics corresponds to basic human needs Values create credibility with the public Values give mgmt credibility with employees Values help better decision making Ethics and profit Law cannot protect society, ethics can.