ACC618 Week 3 Discussion 1 Business Roundtable

The term “Corporate Governance” refers to the practice of putting in place measures to ensure the proper functioning of a company’s board and management. Any top-level management team should be responsible for creating an ethical work environment by implementing these measures.

Stockholders: - Governance used to be centered on the board of directors, but that has shifted to the shareholders. Researchers have found that companies whose shareholders elect at least two directors and where institutional investors attend the annual general meeting have a greater rate of compliance with the regulations.

EMPLOYEES: No matter an employee’s color, religion, or culture, they should be treated fairly. Managers ought to treat every worker fairly and provide them with an equal opportunity to advance in their careers. If management is seen to be unfairly favoring some workers over others, the latter may face legal action from the former.

Communities: In addition to the foregoing, businesses also have an obligation to the neighborhood or city in which they do business. Companies in the chemical industry have a responsibility to warn those in the area about the potential for explosions and other calamities, and they should not dump their waste into rivers, as many people depend on them for drinking water. the same may be said for air pollution. There are severe penalties for engaging in such environmentally irresponsible behavior.

Government: Management ought to follow the law. The government may levy fines and pursue civil or criminal penalties if management does not follow the law. Directors and management should be diligent in carrying out their responsibilities.

REFERENCES

Mintz, S. M., & Miller, W. F. (2023). Ethical obligations and decision making in accounting: Text and cases (6th ed.). McGraw Hill Education.