BBA 1st Year Business Ethics Relationship Between Ethics & Corporate Excellence Very Short Question Answer : Business Ethics Relationship Between Ethics & Corporate Excellence : Corporate mission Statement, Code of Ethics, Organisational Culture, TQM.
Section-A (Very Short Answer Questions) (BBA Notes)
BBA 1st Year Business Ethics Relationship Between Ethics & Corporate Excellence Very Short Question Answer | Index
BBA 1st Year Business Ethics Very Short Question Answer | Page 1
BBA 1st Year Business Ethics Question Answer | Page 2
Q.1. What do you understand by corporate governance?
Ans. The term ‘Corporate Governance’ is not precisely defined anywhere. There seems to be no single definition that neatly ties up the term because corporate governance means different things to different people. It is an interdisciplinary subject of interest to people as diverse as legislators, business people, accountants, economists and even historians.
According to Cadbury Committee of UK, “Corporate governance is defined as the system. by whczh copr&s are thrected and controlled.”
According to Rafael La Portaetal, “Corporate governance” to a large extent, is a set of mechanisms through which outside investors protect themselves against exploitation by the insiders.”
Q.2. What are the characteristic features of good corporate governance?
Ans. Following are the characteristic features of good corporate governance:
(a) Represents the framework under which business decisions are taken Corporate governance represents the value framework, the ethical framework and moral framework under which business decisions are taken. In other words, when investments take place across national borders, the investors want to assure themselves that not only is their capital handled effectively and adds to the creation of wealth, but the business decisions are also taken in a manner which is not illegal or involving moral hazard.
(b) Depends on the rules and practices Good corporate governance depends on the rules and practices that C govern the relationship between the managers and C shareholders of corporation, as well as the stakeholders ,C like employees, pensioners and local communities. It ensures transparency, fairness and accountability in the business.
(c) Key part of the contract: Good governance goes beyond common sense. It is a key part of the contract that underpins economic growth in a market economy and public faith in that system.
(d) Assurance to well-functioning of markets : The role of good governance and corporate responsibility is helping to assure the well-functioning of the markets that are needed for the economic growth and development which cannot be taken for granted.
Q.3. What are
the objectives of corporate governance code?
Ans Following are the objectives of corporate governance code:
(a) The properly structured board is capable of taking independent and objective decisions in place at the helm of affairs.
(b) That the board is balanced as regards the representation of adequate number of non-executive and independent directors who will take care of the interests and wellb eing of all the stakeholders.