The definition of corporate governance is "the means by which the
financiers of firms ensure themselves of receiving a return on their
investment" (Mintz, 2020). It may also be viewed as a set of
guidelines that specify how a business's management, board of
directors, and stakeholders interact and have an impact on how the
firm operates. This corporate governance system will make sure the
agent manages the business in compliance with all employees (Mintz,
2020).
A successful corporate governance system built on four pillars is
necessary to foster an ethical workplace culture. The first of these
four pillars is accountability, which means making sure that
management is responsible to the board just as the board is
responsible to the shareholders (Mintz, 2020). Fairness in defending
the interests of shareholders Transparency calls for the prompt,
accurate, and disclosure of all relevant information (Mintz, 2020). the
state of the economy, performance, ownership, and corporate
governance, for instance. Independence will be the last pillar, with
institutions and processes in place to reduce or fully prevent conflicts
of interest (Mintz, 2020).
I do not have much experience with accountability and fairness. For
instance, filing our tax through TAX Professionals, we must have to
had transparency and independence to ensure filing procedure are
done b accurately. They should disclose client private information and
should only be done internal and external as long clients agreed to
avoid any conflict of interest. It was important to be full transparent
to the clients in order to follow the IRS due diligent and ensure
ethical standards were in 100% implemented. Unfortunately,
unethical behavior might be done by some of the employees in order
to make more money based on incentive bonus or money from the
clients.
Reference:
Mintz, S., & Morris, R. (2020). Ethical Obligations and Decision Making
in Accounting (5th ed.). McGraw Hill.
