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

The Ethics of International Business - Essay Example According 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 are after all paid for working 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 mindful of befitting the secondary stakeholders. Contrary to common belief, there are many stakeholders in the business apart from the shareholder or the stockholder. They are the employees, customers, suppliers, bankers and even the society at large who look for some benefit 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 competence was exercised. The better and more comprehensive method is through Corporate Governance. The company is a legal entity and theref ore has to enter into commercial transactions all the time for carrying on its business activities. These transactions are concluded by the managers on behalf of the company since the legal entity is not a person and needs agents to carry out 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 behavior on the part of managers who do not carry the burden of any wrongdoing on their part. It is to control this likely misuse of power that Corporate Governance assumes importance.