Ethical Governance and Organizational Stability

Ethical Governance, Transparency, and Organizational Stability
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Ethical Governance, Transparency, and Organizational Stability
Introduction
Corporate governance is increasingly directing the global attention, primarily not because people in the modern days live together in societies that demand proper governance, but by virtue that the world has been transmuted into a global village (Khalid, 2014). Over the last decades, the issue of corporate governance has continued to attract a great deal of business and the public interest because of its apparent significance in the economic health of organizations and society in general (Arjoon, 2005). This paper discusses ethical governance and transparency from the perspective of its benefits to organizational stability. The characteristics of ethical governance and its manifestations in the operations of an organization will be discussed. The paper will also explore the components of organization stability and their presentation in modern organizations. In understanding ethical governance, it is also important to understand how much a business should be ethically responsible to be transparent in its daily operations. Lastly, the paper will conclude with an examination of the relationship between ethical governance transparency and organizational stability to appreciate the role of ethical responsibility in organizational success.
Characteristics of Ethical Governance
Corporate governance is commonly associated with leadership, and the power of leadership and the governance of a corporation is determined by its morality, competence, transparency, obligation, and accountability (Othman & Rahman, 2014). In their study, while exploring the concept of ethical leadership and its relationship with corporate governance, Othman and Rahman (2014) found that the issue of ethics or morality was a critical component that every organization should be subject. The authors noted that ethical governance portrays six main attributes including, responsiveness, integrity, fairness, transparency, responsibility, and accountability. Results also indicated that ethical leadership is a critical element, which spurs good governance practices, and that ethical leadership implies that organizations leaders do not compromise on ethics, but portray a strong moral code or standards (Othman & Rahman, 2014). While these were the responses from study participants, these characteristics merge with the commonly accepted attributes of good governance. The United Nations Economic and Social Commission for Asia and the Pacific (n.d) identify good governance to be associated with the rule of law, participation, transparency, accountability, responsiveness, effectiveness, and efficiency, consensus-oriented, and equity and inclusivity.
Organizations with strong leadership that displays the stated ethical governance characteristics will tend to be stable as these are the pillars of success. For instance, historical records indicate failures in different business due to failures to conduct ethically in their business dealings. An example of business failures due to unethical conducts include Enron where top officials abused their power and instead chose to put their selfish in...