The Ethics of International Business Essay Example | Topics and Well Written Essays - 2000 words

The Ethics of International Business - Essay Exampleharmonize to the research findings, it can, therefore, be said that the relationship of the managers, including the directors, with the stakeholders, is mainly fiduciary. They ar after all paid for running(a) for the primary stakeholder, the shareholder to create value and profit for him. It is incidental that for earning this profit, they have to be equally cognisant of befitting the secondary stakeholders. Contrary to common belief, there are many stakeholders in the business unconnected from the shareholder or the stockholder. They are the employees, customers, suppliers, bankers and even the society at large who look for some social welfare from the company, and in turn are also its well-wishers. The various audits and financial data only show that these are results of activities that have been checked for correctness but they do not reflect on what level of competency was exercised. The better and more comprehensive metho d is through Corporate Governance. The company is a legal entity and therefore has to enter into commercial transactions all the time for carrying on its business activities. These transactions are cogitate by the managers on behalf of the company since the legal entity is not a person and needs agents to carry issue these duties for it. This ability of the managers to enter into legal contracts and agreements makes them the agent of the company with the liability resting with the company. This situation gives rise to irresponsible doings on the part of managers who do not carry the burden of any wrongdoing on their part. It is to chasteness this likely misuse of power that Corporate Governance assumes importance.