Business Ethics and Corporate Governance

Business Ethics and Corporate Governance

Contents

Introduction 3

Background of Company 3

Analysis of Corporate Governance from an Ethical perspective 3

Human nature 3

Greed. 3

Corporate governance 3

Good corporate governance 3

The frame work for corporate governance procedures and policies 3

King III Principle 2.3: Corporate governance requires the Board to ensure that the company is run ethically 3

King III - Principle 2.4: The Board should cultivate and promote an ethical corporate culture 3

Ethics. 3

Business Ethics 3

Myth unethical conduct is not serious 3

Ethics and corporate reputation 3

Ethics in relation to corporate governance 3

Concept of an Ethical Officer (EO) 3

An analysis of Sekunjalo and their decisions based on the terms and concepts defined 3

Conclusion and Recommendations 3

Introduction

From an economic perspective, individuals prefer to pursue their own interests to try and increase their own wealth through trading and entrepreneurship as opposed to benefit the society at large. However the actions of these individuals promote the interests of the society at large even though it was not their intention. This phenomenon is characteristic of the invisible hand that affects the market mechanism in such a way the government does not have to intervene to guide the economy of country (Mohr & Fourie, 2011, p. 30). From corporate governance perspective corporations that have experienced financial failure and collapse resulted from company's main objective to accumulate wealth and profit without keeping proper internal control over their finances and other aspects of business (Thompson, 2011, p. 2).

This assignment will analyse the ethical aspect relating to business ethics and corporate governance principles based on the decisions and actions taken by the board of directors of the company Sekunjalo Consortium. The reason for this is to determine whether Sekunjalo Consortium is a good responsible corporate citizen.