Ethics & Corporate Governance
(I need help explaining the following and/or demonstrating it for my upcoming exam if anyone could help me comprehend the concepts I would greatly appreciate it!!)
Explain the conflict between ethical action and wealth maximization in the short-term
Explain why ethical action can lead to long-term wealth maximization
Explain why there is no such thing as absolute rights or wrongs when arriving at an ethical framework
Describe the consequences of acting unethically for the individual, the firm, and society
Describe what an ethical decision-making framework is and why financial professionals should have one
Describe the hierarchy of corporate governance, starting w/ stockholders and moving down to employees
Explain the difference between corporate governance and management
Explain the principal-agent problem and how it applies to corporate governance
Explain the relationship between a company and ALL stakeholders (customers, community, stockholders) Describe sustainability within an ethical and corporate governance context
Describe each of the four pillars of corporate governance
Describe the ideal characteristics of an effective, independent board member
Describe why corporate boards are often not as independent as they should be
Describe the key aspects of a well-governed board of directors
Describe the conflict of interest that often arises when the CEO and Board Chairman are the same person
Relate ethical behavior at the board and executive level to ethical behavior at the employee level