The holistic health of an organization is significantly dependent on established and sustained healthy relations with all stakeholders. In its pursuit to provide maximum returns for its shareholders, an organization must be keen to provide a good working environment for its employees, quality and reliable products for its customers, timely payments to its vendors, and commitment to its social responsibilities.
Business ethics is the use of general ethical principles when dealing with business issues in a wider range than laws do. The business decision-making environment has an element of moral complexities that have ethical implications. These must be exhaustively dealt with before decisions are made and actions taken.
Corporate governance is the application of best management practices compliance with the law and adherence to ethical standards. It is concerned with the ownership, control, and accountability of an organization.
Business ethics and corporate governance form the basis for which organizations must conduct when in the pursuit of economic objectives in relation to ethical and social issues. To grow profits and at the same time a reputation, an organization has to adapt frameworks for governing critical decisions, procedures, and activities.
Organizations’ practices, policies, and values guided by good governance are paramount in the long-term enterprise plans and the implications are positive to the overall company’s performance.
