For your “Complete” assignment, write a narrative essay addressing the four questions or statements listed below. Your essay must follow APA format, include a minimum of 1,200 words, and 3 scholarly resources.
Why is corporate governance an important concern for companies that are pursuing the social responsibility approach? How does it improve or change the nature of executive and managerial decision making?
What characteristics of the board of directors usually lead to effective corporate governance? List and explain challenges that have contributed to the cause of corporate governance failures.
What is the rationale for government to regulate the activities of businesses? How is our economic and social existence shaped by government regulations?
Compare the costs and benefits of regulation. In your opinion, do the benefits outweigh the costs or vice versa? What are the advantages and disadvantages of deregulation?
Ferrell, O., Thorne, D., & Ferrell, L. (2021). Business and society: A strategic approach to social
responsibility & ethics (7th). Chicago Business Press.
Overview
Corporate governance is a framework on which boards and top executives rely to assist them operate the company responsibly, ethically, and accountable. Corporate governance principles are founded on openness, accountability, responsibility, and justice.
These four values are also inextricably linked to the company’s social duty. The connection between excellent corporate governance and social responsibility assists firms in maintaining a healthy equilibrium. It also supports the company’s attempts to build control systems, increase shareholder value, and improve shareholder and stakeholder satisfaction.
Good corporate governance is based on three precedents: economic advancement, social growth, and environmental improvements. Good governance, in the end, supports sustainability, creates sustainable values, and assists businesses in achieving these objectives. Companies also gain in the long run by lowering risks, attracting new investors and shareholders, and boosting equity.
Companies will feel forced to back their efforts with transparency and public disclosure as the hunt for corporate sustainability continues to strengthen and enhance the principles of good corporate governance. Transparency efforts will offer the general public with information on the relationship between corporate governance and better sustainability. The more stakeholders that understand the relationship between corporate governance and sustainability, the stronger that relationship will develop over time.
