Making it Stick | What is the role of ethics officer and what message does it convey to stakeholders?

What is the role of ethics officer and what message does it convey to stakeholders?

The hiring of an ethics officer represents a formal commitment to the management and leadership of an organization's ethics program. The role usually develops as a separate department, responsible for enforcing the code of ethics and for providing support to any employees who witness unethical behavior. It sends a clear message to an organization's stakeholders and provides an appropriate person to whom employees and managers can when they need additional guidance and support.

Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | What is the argument in favor and against of merging the roles of chairman and CEO?

What is the argument in favor and against of merging the roles of chairman and CEO?

The argument in favor of merging the roles of chairman and CEO is one of efficiency. By putting the leadership of the board of directors and the senior management team in the hands of the same person, the potential for conflict is minimized and, it is argued, the board is given the benefit of leadership from someone who is in touch with the inner workings of the organization rather than an outsider who needs time to get up to speed.

The argument against merging the roles of chairman and CEO is an ethical one. Governance of the corporation is now in the hands of one person, which eliminates the checks and balances process that the board was created in the first place. This type of situation compromises the independence of the board, and the powers of the stockholders are minimized.



Source: Ghillyer_Business Ethics A Real World Approach 2e