Recognising Value Based Approach In Corporate Governance: Institutionalization Of Ethics

Corporate governance is the structure used to direct and manage business and affairs of the company towards enhancing prosperity and corporate accountability. However, for decade’s argument on the inadequacy of corporate governance mechanism to cope with the modern corporations seem to hit the business agenda. Several views indicate that the principle based governance designed to direct and manage business could not cope with the globalization era. The purpose of this paper is to propose fundamental element to fill the inadequacy- incorporating value based approach into corporate governance practices. This paper argues that value based approach form of corporate governance practices need to be introduced to support the present corporate governance practices framework. Hence, this paper will discuss the ethics aspects of governance focusing on formalization of ethics in organization as a mechanism to improve governance practices. A single case study was conducted to explore the ethical mechanisms that have been institutionalized in order to enhance corporate governance practices. Interview was performed with relevant key person in the company. Based on the interviews conducted several ethical mechanism were discovered in order to enhance better governance in the corporation. This paper contributes towards new perspective of governance whereby the ethical aspects is integrated into the governance practices. Field of research: ethics, corporate governanc