Planque, Ricah B.

Written Report in Business Ethics

ABM 12-27 Group 3

TOPIC: GOOD CORPORATE GOVERNANCE

GOOD CORPORATE GOVERNANCE

-Practice of directing and controlling the company through the relationship between
management governed by a system of rules, practices, and processes

-It promotes interests to achieve maximum performance

Explanation:

Corporate governance is a system of rules, governance, and practices which controls and directs a firm.
It also promotes achieving maximum performance of its business environment by balancing the
interests these people has.

Of course, this has Core Principles including the following: (I will only discuss one - Fairness)

CORE PRINCIPLES

➢ Fairness

➢ Accountability

➢ Responsibility

➢ Transparency

➢ Stewardship

FAIRNESS

-Involves the concept of justice as the central pillar that creates a fair business environment

It may be:

❑ Distributive treatment

❑ Procedural treatment

❑ Interactional treatment
Explanation:

Fairness from the word itself “fair” means being just and equal. This refers to the kind of treatment the
company gives. It may be Distributive, meaning, the company should be aligned with the inputs
(example: Salary, bonuses, benefits). Procedural, by means of empowering them and letting them make
their own decision. Lastly, Interactional which involves appropriate and equitable treatment and giving
them proper information.

BENEFITS OF GOOD CORPORATE GOVERNANCE

The bible verse that states that “What you sow, you will reap.” (Galatians 6:7-8)

Applies to the benefits of strong corporate governance

Explanation:

When employees feel their input is aligned with their compensation, they become committed. But,
when people are not treated equitably, they tend to exhibit counterproductive behaviour which will
reflect to the company.