Uploaded by Hassan Versi

THE IMPORTANCE OF CORPORATE GOVERNANCE , CORPORATE SOCIAL

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TABLE OF CONTENTS
SLIDE 2
 THE IMPORTANCE OF CORPORATE GOVERNANCE
, CORPORATE SOCIAL RESPONSBILITY AND
ETHICS
SLIDE 3
 CODE OF ETHICS AND CORPORATE
GOVERNANCE
SLIDE 4
 CODE OF ETHICS AND CORPORATE SOCIAL
RESPONSBILITY (CSR)
SLIDE 5
 CORPORATE SOCIAL RESPONSBILITY –PROMOTE
ETHICAL BEHAVIOR AMONG EMPLOYEES
SLIDE 6
HASSAN YUSSUF VERSI
TP024349
 THE FINDINGS OF THE RESEARCH CONDUCTED
ON THE IMPORTANCE OF CODE OF ETHICS , CG
AND CSR IN RELATION TO EMPLOYEES
SLIDE 7
THE IMPORTANCE OF CORPORATE GOVERNANCE ,
CORPORATE SOCIAL RESPONSBILITY AND ETHICS
EFFECT ON
ORGANISATION
&
The
Importance
STAKEHOLDERS
“Employees”
“Consumers”
Corporate Failures
Lehman Brothers
Enron Corp
WorldCom
Parmalat
“Investors”
“Other Groups”
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CODE OF ETHICS AND CORPORATE GOVERNANCE
CODE OF CONDUCT OF
“In performing their job duties, Amazon
employees should always act lawfully, ethically,
and in the best interest of Amazon. This code of
Business Conduct and Ethics (the Code of
Conduct) sets out basic guiding principles.
Employees who are unsure whether their
conduct or their co-workers complies with the
ENRON COLLAPSE
PARMALAT COLLAPSE
“Several corporate governance problems
“Several corporate governance problems
have emerged due to Enron’s wreckage.
have led to the Parmalat crisis. Firstly,
Numerous
unethical
one of the non-executive directors in
activity within the Enron organisation
Parmalat was not independent as he had
continued to light up long after its
been working in Parmalat as a senior
downfall. Overall, corporate governance
manager
in Enron was weak in almost all aspects.
chairman and chief executive positions
Thus, the board of directors comprises
were not separated as was recommended
several people who lack moral character.
by corporate governance codes of practice.
Also, they are often willing to engage in
Thirdly, the corporate governance code in
fraudulent activity, which was the root of
Italy specified that where a group of
the
shareholders controls a company, it is
illustrations
company's
of
corporate
failure”. (Dibra, 2016).
governance
since
1963.
Secondly,
independent
shareholders;
this
of
the
was
controlling
certainly
upheld by Parmalat” (Dibra, 2016).
the legal department".
the
even more important for some directors to
be
code of conduct should contact their manager or
not
Code of conduct acts as a guideline for resolving
contentious circumstances and will encourage
ethical behaviour among employees while
Maintaining transparency and responsibility in
their day-to-day responsibilities.
CODE OF ETHICS AND CORPORATE SOCIAL RESPONSBILITY (CSR)
 CSR is the voluntary incorporation of social and
environmental issues into a company's
commercial operations and interactions with its
stakeholders.
 CSR is closely related to the ideas of
"Sustainability," which assert that businesses
should make choices not just based on financial
considerations such as earnings or dividends but
also the immediate and long-term social and
environmental repercussions of their actions.
CSR POLICY
ENVIRONMENTAL
SUSTAINABILITY
PROGRAMS
COMMUNITY
OUTREACH PROGRAM
EMPLOYEE HIRING &
TRAINING
PROGRAMS
An increasing number of companies have released
voluntary codes of corporate conduct, which indicate
pledges to ethical ideals in areas such as the “environment,
human rights, labour standards, consumer protection, and
taxes” (Dean, n.d.). Companies are therefore urged to
disclose corporate ethics statements to the public,
containing information on the company's “social, ethical,
and environmental” policies and other codes of conduct to
which it subscribes. For example, above illustrates
Amazon's corporate social responsibility policy.
CORPORATE SOCIAL RESPONSBILITY –PROMOTE ETHICAL BEHAVIOR AMONG
EMPLOYEES
80% Job
seeker
prefer to
work with
CSR driven
companies
90% of
professional
feel that CSR is
a moral
responsibility
that
companies
have towards
the community
86% of
engaged
employees
feel happy
at work
40% employees
in CSR driven
companies have
better morale
than Non CSR
driven companies
Source: (Tahlil Azim, 2016)
THE FINDINGS OF THE RESEARCH CONDUCTED ON THE
IMPORTANCE OF CODE OF ETHICS , CG AND CSR IN
RELATION TO EMPLOYEES
According to (Silva et al., 2021) study, the findings
demonstrate the implementation of good practises of integrity,
particularly the Code of Ethics and Conduct. Adopting an
ethical code may be seen as a means to establish, promote, and
steer employees' and organisations' responsible behaviour. It
helps create and maintain a positive business reputation and
stakeholder confidence.
According to research findings (Dusane & Bhamare, 2021),
companies with effective corporate governance have a
beneficial effect on employee productivity. When a corporate
governance system exists, employees' decision-making power is
enhanced.
According to the findings of a study conducted by (Tahlil
Azim, 2016) on the relationship between employees'
perceptions of the external CSR practises of their organisations
in relative terms and employees' organisational commitment
and job engagement, organisation engagement, organisational
citizenship behaviour related to the individual and
organisational citizenship behaviour related to the organisation
in the context of the Saudi banking industry, there is a positive
relationship. It means that the management of banks in Saudi
Arabia should regard external CSR as one of the most important
factors in sustaining a motivated and passionate staff.
The conclusion of one research (Hyewon Youna et al., 2017)
was that employees' views of their casino firm's participation in
CSR activities positively affect their loyalty to the company,
while employees' job satisfaction mediates this link.
CONCLUSION
CORPORATE GOVERNANCE
CORPORATE SOCIAL
RESPONSBILITY
BUSINESS ETHICS
SUCCESS!!
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