ETHICS SESSION 3 - SUMMARY

Significance of Ethics in each business

Each Business needs to work morally in light of the fact that unscrupulous
methods can give momentary achievement yet not practical development so
ETHICS is the key prerequisite.
Corporate Governance
Corporate Governance is the gathering of procedures and instruments by
which partnerships are controlled and worked.

Arrangement/Composition of the Board of Directors

Governing body goes about as a head operator connection between the
organization and the investors
1 Executive Director – Has the trusteeship of investors and needs to work in a
moral way to make the association move towards maintainable development
with great social picture too. As such, need to augment their pay
2 Non-Executive Director – They don't need to take up the everyday the board
and obligation of the business. At the end of the day, need to augment riches
creation
3 Independent Directors-Independent chief is the person who doesn't have a
material or financial association with the organization. They ensure that the
trusteeship relationship is constantly pursued.

Duality
At the point when the Chairperson and the CEO is a similar individual at that
point it's called Duality Administrator is the person who ensures that the board
runs easily and the choices are taken firmly by the KMP. These need to work
alongside the board so executives or sheets work in the most ideal manner.
President is the person who cares for the everyday working of the organization
The CEO is in charge of taking the 3 fundamental choices
1. Long term choices
2. Important and Irreversible choices
 3. Decisions including enormous entireties of cash.

Agency Theory
The operator speaks to the head and therefore every representative is the
specialist of each investor and along these lines they need to guarantee the
worth added to the organization and the assets so utilized.

Stewardship Theory
This is known to be the chain of executives where conveyance of kowtower are
vital where CEO contracts or spot chiefs on board to express yes to his/her
choices or the activity is appropriately of similarly as a Yes Man.