Corporate Governance And Ethics
Main Article Content
Abstract
A review of the past reveals that models and theories of corporate governance are dynamic and subject to constant change. One explanation is that profit-making took precedence over social conscience, which is fundamentally lacking. Businesses worldwide are attempting to establish a culture of leadership within their company. Corporations grew stronger during the global surge of capitalism, forcing governments to give in to their manipulations and become subservient. Therefore, the purpose of this article is to survey the various theories of corporate governance by reviewing relevant literature. Agency theory laid the groundwork for subsequent theories in corporate governance, including stewardship and stakeholder theory, as well as resource dependency and transaction cost theories, as well as political and ethics-related frameworks like discourse and postmodernism ethics.Instead of focusing on the regulatory frameworks, along with theories, investigate the responsibility and implication of the variables such as the audit committee, board composition, and social relationships of the top management and the independent directors. Therefore, instead of basing corporate governance theory on a single theory, it is recommended to incorporate a mixture of theories that can describe an effective governance practices.