Corporate Governance & Business Ethics: Challenges & Responsibiltes

Corporate Governance and Business Ethics are important to better understand the complex and dynamic relationship between organizations and their stakeholders. The relationship between business ethics and corporate governance has always been enigmatic. Business itself cannot be ethical, only the managers and corporate strategies can appliance ethics within the structure of the business strategy. The role of corporate governance is to set out the rules within which an organization must operate and to ensure those rules are observed whereas the role of Business Ethics in Corporate Governance refers to the manner in which ethics is applied during the process of running or administering the organization. Therefore Business Ethics in Corporate Governance can be practiced as the management of the organization, which may be government deals or business concern with internal and external issue. The growing demand of corporate governance arises due to conflict of interest between different stakeholders. Different stakeholders have different point of views and goals as well as less knowledge of each other preferences. There are other expression to the corporate governance subject, such as the stakeholder's point of views and the corporate governance models around the world. The focus on Corporate Governance has heightened since the past few decades the whole world has seen the corporate scandals of big companies such as Quest communication, Enron, Tyco, WorldCom, Satyam computer Service. These Corporate Collapse have leads to the growing volume of academic and practical research in this area. This article discusses in detail definition and meaning of corporate governance and addresses its effects on corporate performance & economic performance. This article explores the role of ethics in corporate governance and also addresses how ethics can make corporate governance more meaningful. This article also focuses on Challenges and responsibilities of corporate governance.