International Business: The New Realities, 5th Edition

Benefits of Corporate Governance

Corporate governance that ensures ethical practices, CSR, and sustainability provides numerous benefits to the firm.51 These benefits include:

• Increased employee commitment. Firms that practice ethics, CSR, and sustainability find it easier to attract and retain employees. When workers are proud of their employer, they tend to work more diligently and increase productivity.

• Increased customer loyalty and sales. Many customers prefer to patronize businesses that emphasize ethical practices. Best practices that benefit society enhance sales prospects.

• Improved reputation and brand image. Operating ethically and responsibly enhances the firm’s public image, customer preference, and the ability to attract capital. ...