Business Environment, 4th Edition by Pearson

16

Corporate

Governance

437

The economic and financial crises, which began in 1998 in certain Asian countries and

spread to other regions of the world, as well as the recent spectacular bankruptcy cases

all over the world, underline the need for a reliable and transparent management

system. A system of checks and balances needs to be put in place among shareholders,

directors, auditors, and management. There is now an increasing realisation among the

modern and progressive companies that only ethics and corporate social responsibility

make a good business sense. An ethical and socially responsible company generally

conforms to the standards of good ...