Components
While I have not personally experienced corporate governance in a professional environment,
I will speculate about the essential components. Generally, an entity’s fiduciary responsibility
is to in & act the best interest by increasing wealth and value (Ehrhardt shareholders’
Brigham, 2016). This aligns with the stewardship theory, where managers choose what is in
the best interest over personal gain. Corporate governance broadly refers the company’s to
rules and principles organization employs balance the interests of stakeholders and an to its
company success.
The components essential corporate governance are oversight, and to “accountability,
control” (Mintz Morris, 2020, p. 135). Accountability corporate governance the & in is
checks and balances that hold individuals accountable for the outcome of activity or an
decision. Oversight in corporate governance is the mechanism that monitors the actions taken
by the entity and employees ensure compliance with the relevant standards, laws, and to
regulations for industry. Control corporate governance the process of observing and its in is
scrutinizing the activities carried out by a company. Strong corporate governance is necessary
for all organizations because enhances the performance and profitability (Mintz & it firm’s
Morris, 2020).
Ethical Climate
These corporate governance components affect organization's ethical climate many an in
ways. A company’s ethical climate starts with the tone the top. When leadership models at
ethical behavior through their decisions and actions, creates the basis of cultural it an entity’s
environment and ethical values. The accountability component used observe the is to
effective implementation of company policies and procedures. These policies and practices
are vital communicating positive ethical standards employees. The oversight component in to
seeks establish the use of due diligence when making decisions. This affects the ethical to
