Title: Corporate Governance and its Impact on Ethics Authors 1. Dr. Robert Scully 2. Dr. Sandra Roberts 3. Dr. Marilyn Marousek 4. Dr. Barry Brock 5. Dr. Edward Scott Barry University, Miami Shores,... [ view full abstract ]
Title: Corporate Governance and its Impact on Ethics
Authors
1. Dr. Robert Scully
2. Dr. Sandra Roberts
3. Dr. Marilyn Marousek
4. Dr. Barry Brock
5. Dr. Edward Scott
Barry University, Miami Shores, Florida, USA, 33161
Abstract
Ethics has been defined as the study of moral obligation or separating right from wrong. Business ethics is part of applied ethics that examines ethical principles and problems that can arise in a business environment. However, ethical standards and the extent to which organizations engage in ethical behavior depend on a number of factors including the type of corporate governance structure under which the corporation operates. Researchers have identified three models of corporate governance in developed capital markets and this paper explores the two ‘western’ models. In particular, this paper addresses one aspect of governance which is the issue of combining versus splitting the positions of corporate Chair and CEO roles and presents the results of an initial study. The authors conclude by recommending further investigation of the impact of corporate governance structures on ethical behavior.
Theoretical Base:
Business ethical standards usually require the participation of the board of directors in the planning and implementation of ethical behavior by drawing up an ethics code (EC) and then monitoring its fulfillment. The theoretical basis could be viewed ethically as contrasting the principle of deontology (‘rights’) to the principle of utilitarianism (‘greatest good for the greatest number’).
Research Questions & Method:
The board research question that guided this study was whether corporate governance structures have a significant impact on corporate policies and ethical actions. In particular, the specific research question that would guide this initial study is: Do corporate governance structures, such as the same individual serving as both CEO and Chair, have a significant impact on corporate ethical behavior and perception? The authors conducted an initial study comparing a list of ‘least’ ethical to ‘ethical’ organizations using the perception of ethical behavior.
Implication:
The implications of this study will assist organizations to recognize that corporate governance structures impact corporate policies and actions and their perception of ethical behavior.
Keywords:
Corporate Governance, Ethics
References
French, W. and Weis, A. (2000), "An ethics of care or an ethics of justice?",
Journal of Business Ethics, Vol. 27 Nos 1/2, pp. 125-36.
García-Sánchez, I., Rodríguez-Domínguez, L., and Frías-Aceituno, J. (2015). Board of directors and ethics codes in different corporate governance systems. Journal of Business Ethics, 131(3), pp. 681-698.
Gill, A. (2008), "Corporate governance as social responsibility: a research agenda", Berkeley Journal of International Law, Vol. 26 No. 2, pp. 452-78.
Gleason, P., President National Association of Corporate Directors. “Weighing the benefits of a combined chair and CEO role” Dec. 21, 2015.
Harvard Law School Forum on Corporate Governance. “Separation of Chair and CEO Roles” Sept. 1, 2011
Huffington Post, 12 most unethical companies in the world: ranking, May 25, 2011.
Lantos, G.P. (2002), "The ethicality of altruistic corporate social responsibility", Journal of Consumer Marketing, Vol. 19 No. 3, pp. 205-32.
Topic Areas
• Main Conference Programme
Presentation Format
• Paper Submission
Submission Date
• February 29, 2016
Is It a Student Paper?
• No
