Business Ethics and Corporate Governance, Second Edition

BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

There is an increasing awareness that corporates owe their existence to shareholders and the long-term sustainability of companies depends on winning their confidence through disclosures and transparency in operations and accountability for their actions to them. This is achieved through voluntary actions on the part of board of directors and through regulatory framework such as stock exchanges, securities and exchange board and other regulatory bodies. These principles are codified as principles of corporate governance. Figure 16.2 clearly illustrates how the board of directors and top management are placed in the structure of corporates to interface, interact and intervene, when necessary, to carry ...