What must be done to improve ethics in finance and corporate governance?
Corporate governance can be referred to the rules, processes, or laws by which businesses are operated, regulated and controlled. It can also refer to internal factors defined by the officers, stockholders or constitution of a corporation. After finding the meaning of Corporate governance, which can also be referred to corporate responsibility, I thought about the policies in which the company I work for have. I work for Northrop Grumman, which is one of the leaders in global security.
My company does strive to remain committed to maintaining the highest of ethical standards, embracing diversity and becoming an ideal corporate …show more content…
Some ways that the SEC can enforce these compliance regulations is to develop an inspection program to review corporation’s financial statement and accounting practices. Shareholders should be given a greater role in voting, through nominations, election of individual candidates instead of slates, and majority instead of plurality decisions. The board's compensation committee should be required to approve the compensation of all top-tier executives. The board's audit committee should obtain control over the internal audit function as well as over the outside auditors, including the power to terminate personnel and to approve compensation.
Tying ethics to finance isn’t that hard. Ethics is the moral correctness of specified conduct, the study and practice of appropriate behavior, regardless of the behavior's legality. Certain industries have professional organizations setting and promoting certain ethical standards. When we look at the banking industry for an example, we are putting our money into in a company, who is supposed to protect it, give us interest on it and possibly advise on making investing decisions. With investing, ethics helps inform the investment decisions of some individuals and companies. But recently large banking has failed. The U.S. Financial system was rather free and didn’t have many regulations to control greed and fraud. Wrong and risky moves were made and in turn it affected