Corporate Governance
   • A corporate governance framework is a detailed governance, risk and 
    compliance system which synchronizes governance with risk and compliance. 
    It addresses all the issues within an organization relating to strategy, 
    processes, technology and people.
   • Corporate governance is not a once- off activity but a long term corporate 
   culture. An effective governance policy recognizes a governance framework 
   and an integrated reporting system. 
   • It makes us look at things from as many angles as possible
    Necessity of Corporate Governance
    “What makes corporate governance necessary? Put simply, the 
    interests of those who have effective control over a firm can differ from 
    the interests of those who supply the firm with external finance. The 
    problem commonly referred to as a principal- agent problem, grows out 
    of the separation of ownership and control and of corporate outsiders 
    and insiders. In the absence of the protections that good governance 
    supplies, asymmetries of information and difficulties of monitoring 
    results in capital providers who lack control over the corporation, 
    finding it risky and costly to protect themselves from the opportunistic 
    behavior of managers and controlling shareholders.” (OECD) 
      Corporate Governance Principles
          Principles        Core Values
    • Accountability  • Fairness 
    • Responsibility  • Accountability 
    • Honesty and Transparency 
                      • Responsibility
    • Integrity 
    • Openness        • Transparency
    • Mutual respect 
    • Performance Evaluation 
    • Commitment
            What is Ethics?
   • Ethics is the branch of philosophy that focuses on morality and the 
    way in which moral principles are applied to everyday life;
   • Ethics has to do with fundamental questions such as, “What is fair?”, 
    “What is Just?’, and “What is the right thing to do in this situation?”;
   • Ethics involves an active process of applying values, which may range 
    from religious principles to customs and traditions. 
                Business Ethics
    Business ethics can be defined as the principles, norms and standards that guide an organization's 
    conduct of its activities, internal relations and interactions with external stakeholders
    • Business ethics focuses on what constitutes right and wrong behavior in the world of business;
    • Corporate business executives have a responsibility to their shareholders and employees to 
     make a profit. But in doing so, business people also have a responsibility to the public and 
     themselves to maintain ethical principles.
    • Although ethics provides moral guidelines, individuals must apply these guidelines in making 
     decisions.
    • Business ethics is not a separate theory or ethics; rather it is an application of ethics to business 
     situations.
    • Higher ethical standards are expected of professionals who serve as models in society e.g. 
     Attorneys, business leaders, religious leaders, executives etc