Corporate Governance and Ethical Responsibility

Corporate Governance and Ethical Responsibility

Introduction

Dr. Do Right is in coordination with a lot of stakeholders on daily basis, on a general context stakeholders (stakeholder in English) are all actors, internal or external economic and social partners of the firm. The activity of the company has a direct or indirect impact on these actors and these actors have a greater or lesser influence on the company. These are complex networks of influence, relationships, partnerships, power, and interdependence: to some extent, the company depends on each of its stakeholders for its survival, and vice versa.

Stakeholders are involved in business activity in terms on the daily basis are:

Employees

Shareholders

Clients / consumers

Suppliers Competitors

Partners

Government

Local authorities

Investors Associations

NGOs

Citizens

For an enterprise, information, consultation and dialogue with stakeholders is indispensable: the sine qua non for the legitimacy and value of the policy of sustainable development that seeks to engage. As they all have certain extend of loyalty towards the hospital.

When it comes to identifying relevant stakeholders, they can be both primary and secondary (Beck, 1979). The value of the relationship is the result of the prioritization of the stakeholders by the company. The stakeholder that gets the highest priority will be the most valued by the customer. Prioritization can be the result of considerations on the basis of multiple points and can range from dependency to actually with strategic and salience level of priorities in the middle. These are discussed here under,

The nature of exchange between the company and its stakeholders can be functional, symbolic or hedonic. The level of priority that the company gives to its stakeholder will also be influenced by the nature of the exchange. The cycle between relevant stakeholder identification, value of the relationship identification and nature of the exchange identification drills down to relationship performance. The relationship performance depends on total communication. This means how effectively the leadership is communicating with the primary and secondary stakeholders, where is the communication controlled and what if the third party communication between the company and the stakeholders or the stakeholders and others. Other than communication, the relationship performance also depends on the environmental factors such as salient issues macroeconomic factors, political scenario of the country where the company performs and the legislation. All these make up brand value. The summary of the above model is shown in the figure below (Crasket, 2009).

Ethical dilemma requires ethical decision-making. Ethical decision-making is a psychological process that examines several ethical rules and principles to judge or guide group or individual decisions or aimed actions. It helps an individual to determine the right approach also capacitate an individual to judge whether any individual's actions or decisions are appropriate or not. It also intends to answer scenarios about how an individual should act in a situation (Garber, 2008). This paper provides three stories having specific ethical dilemmas.

Ethics is a disciplined and systematized reflection on our ethical practices. It is a means to test our moral values, judgments, responsibilities, aims, and actions. Ethical reflection offers a means to analyze arguments, examine different ways in ...