Corporate Governance represents the moral framework, the ethical framework and the value framework under which an enterprise takes decisions. In the long run ethical behavior has a positive impact on the company’s performance. Ethics just makes good business sense. Values are not for large companies alone.
Q. What is one of the reasons for corporate governance?
Corporate governance is important for the following reasons: It lays down the framework for creating long-term trust between companies and the external providers of capital. It improves strategic thinking at the top by inducting independent directors who bring a wealth of experience, and a host of new ideas.
Table of Contents
Q. What are the causes of corporate failure?
RISK FACTORS BEHIND CORPORATE FAILURE
- 1 LACK OF BOARD EFFECTIVENESS.
- 2 BOARDS’ RISK BLINDNESS.
- 3 POOR LEADERSHIP ON ETHOS AND CULTURE.
- 4 DEFECTIVE COMMUNICATION.
- 5 EXCESSIVE COMPLEXITY.
- 6 INAPPROPRIATE INCENTIVES.
- 7 INFORMATION “GLASS CEILING”
Q. What is the link between ethics corporate governance and corporate social responsibility?
Both Corporate Governance and CSR focus on the ethical practices in the business and the responsiveness of an organisation to its stakeholders and the environment in which it operates. Corporate Governance and CSR results into better image of an organisation and directly affects the performance of an organisation.
Q. Is CSR a legal necessity?
If a company needs to protect its national and/or international “social license to operate” then, yes, CSR is necessary. Companies that this applies to are usually those that provide goods and services to the general public or the government, where the company and/or brand image is important to protect.
Q. What is governance and CSR?
CSR Governance Guidelines. Boards of directors recognize that effective management of social and environmental risks can improve business performance. This oversight is referred to as Corporate Social Responsibility (CSR) Governance.
Q. How do you demonstrate CSR?
Here are seven tips you can follow to ensure your company is a responsible corporate citizen.
- Adopt a business code of ethics.
- Follow a workplace health and safety program.
- Commit to protecting the environment.
- Get your suppliers on board.
- Be smart about donating money.
- Don’t greenwash your business.
