Business Ethics and Corporate Governance, Second Edition

HOW ETHICS CAN MAKE CORPORATE GOVERNANCE MORE MEANINGFUL

1. Corporate governance is meant to run companies ethically in a manner such that all stakeholders—creditors, distributors, customers, employees, and even competitors, the society at large and governments—are dealt with in a fair manner.
2. Good corporate governance should look at all stakeholders and not just shareholders alone. Otherwise, a chemical company, for example, can maximize the profit of shareholders, but completely violate all environment laws and make it impossible for the people around the area even to lead a normal life. Ship-breaking at Valinokkam, near Arantangi in Tamil Nadu, leather tanneries and hosiery units in Tirupur, have brought about too much of environmental degradation, ...