Corporate governance and business ethics

Abstract

Corporate governance plays an integral role in shaping the economic prospects of developing countries. In order to survive in the long run the business organizations should concentrate on the welfare of the society while recent high-profile corporate governance failures in developed countries have brought the subject to attention, the issue has always been central to finance and economics. The issue is particularly important for developing countries since it is central to financial and economic development. Recent research has established that financial development is largely dependent on investor protection in a country. India has got one of the best corporate governance laws but poor implementation that has affected corporate governance. Concentrated ownership of shares, pyramiding and tunneling of funds among group companies mark the Indian corporate landscape. Business world is, to some extent, a reflection of the country's social and cultural ethos. The unprincipled behavior among people has become so commonplace that even the corporate world has been affected. It is therefore felt that unless companies look after the interests of their stakeholders and apply the ethical code of conduct in their dealings, they can at best gain only temporary benefits. Companies have begun to realize the importance of good Corporate Governance and Business Ethics The present paper attempts to focus on the evolution of the concept of corporate governance in India, from its independence in 1947 to the present. Further the paper examines the relation of corporate governance with that of business ethics, changing scenario in corporate sector and the role of business in society. [ABSTRACT FROM AUTHOR]