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Corporate governance: why the board must lead on ethics

Business ethics are good for company performance, but the tone has to be set from the top

Enlightened company leaders embed ethics from the top

Much is written about the role, indeed duty, of the board in setting the ethical values of the organisation. A board is responsible for determining, articulating and communicating the values and standards of the business, and for ensuring that the policies, procedures and controls in place act to embed, rather than hinder, ethical values throughout the business.

But can boards demonstrate that they are committed to ethical standards and their application to the way they govern and conduct themselves?

The business case for business ethics has been well demonstrated through the costs and impacts of the repeated high profile cases of corporate greed and misconduct. Often those integrity failures are a result of senior individuals crossing ethical boundaries as well as ignoring or circumventing the rules set out in law.

In today’s environment, stakeholders have high expectations that companies should be run in accordance with good corporate governance practices – it is...

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Comments

I have worked in the

I have worked in the corporate world for almost all my life and I agree with most of your point. The site ethics.org is also a good resource for exploring this topic. There is an article on there regarding the development of corporate ethics rules, which some people may be interested in.

link: http://www.ethics.org/resource/developing-code-conduct-corporate-board-directors-roadmap

ethics /values

 Y OUR GLOBAL INPUT INTO THE BUSINESS WORLD HAS  REALLY CREATED A SUSTAINABLE WORLD OF HOPE  IN THE GLOBAL ECONOMY. but i am thrilled why this is not significant in the african system. COULD THERE HAS BEEN ANY HIDEN KNOWLEDGE  UNVELLED TO THE AFRICAN ENTREPEUNEUR,;  ETHICS AND VALUES  missing tools?

         chukwu

Board and etics

Here write:
'explicit reference to ethical principles and terminology has generally been absent from corporate governance guidance and regulation both at the EU level and within most member states'.
It's true.
Then others sentences from the article is null.
Many insider's estimations was given that ethical level of directors’ behaviours was lowest for staff of any company.
It is our practical results for special voting in some countries of East Europe.

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