MGSC14H3 Chapter Notes - Chapter 5: Fiduciary, Good Governance, Whistleblower
Document Summary
Paramount duty of bod: safeguard the interest of shareholders: corporate shareholder accountability: legally accountable. Corporate stakeholder accountability: strategically accountable, if not legally. Shareholders, employees, customers, suppliers, competitors, lenders and creditors, gov"ts, activists, others (incl. media) affected or can affect the a(cid:272)hie(cid:448)e(cid:373)e(cid:374)ts of the (cid:272)o. "s o(cid:271)je(cid:272)ti(cid:448)es. Difficulty: values and priorities differ in different cultures. Olutio(cid:374): hypernorms (universal values): honesty, fairness, compassion, integrity, predictability, responsibility: effective ethical code of conduct must be: ; n- need for whatever is taken; e- expectation of being caught is low: role-dependence duty: the duties assumed on a role define the ci. Key elements of corporate governance & accountability: ethical corporate culture. Elements: ethical leadership by executives, reward systems w/ ethical considerations, perceived fairness& fair treatment, open discussion of ethics, autho(cid:396)it(cid:455) st(cid:396)u(cid:272)tu(cid:396)e to e(cid:373)phasize e(cid:373)plo(cid:455)ees" accountability to question their own & the autho(cid:396)it(cid:455)"s a(cid:272)tio(cid:374)s. Encourage shared values, support employee aspirations, communicate values, building trust and confidence.
