In modern society, corporate society is concerned with the exercise of power over the most significant units. Corporate governance involves a set of relationships between a company’s management, its board, its shareholders, and its stakeholders. The relationships are issues to law and regulations and, in parts to voluntary adoption.
Such important issues should be discussed with employees and employers alike. Training sessions should be provided via platforms such as YouTube or Twitch. To make this happen companies should be established on such platforms (by gaining some Twitch followers first for instance) and regular training sessions should be provided for the staff so everyone is aware and can work on improving the situation.
Below are some of the ethical issues governing a corporation.
- Â Â Â Executive Compensation
Executive compensation is a divisive issue when dealing with shareholders’ accountability. To attract talents, companies need to provide competitive compensation, which has to stand the stakeholders’ examination test. The remuneration committee is required to frame a policy on the remuneration of key employees. The paid remuneration to the key executive is required to be made annually.
Companies should consider framing transparent policies to retain a trustworthy relationship between the shareholders and the executives.
- Â Â Â Risk Management
Large corporations are now exposed to real-time monitoring by business and national media outlets. Framing and implementing the risk management policy is important since the board is only concerned with company affairs alone.
The independent directors are authorized to measure the risk management systems of the company. The key guiding principles and practices for qualifying risks in everyday activities must be effective for the governance model.
- Â Â Â Healthy And Safe In The Workplace
Employees have the right to safe working conditions according to stipulated rules and regulations. Health and safety should not be limited to physical harm. Factors that can contribute to health-related behavioral risks include job insecurity, high demands, and low autonomy. Some of the violation includes the following;
- Â Â Â Â Powerful industrial trucks, for example, safety requirements for fire trucks.
- Â Â Â Â Electrical or wiring methods, for instance, knowing the procedure of the circuit to reduce electromagnetic interference.
- Â Â Â Â Electrical or general requirements do not place the conductors in wet locations.
- Â Â Â Â Hazard communication like classifying harmful chemicals.
- Â Â Â Discrimination and harassment of employees
It is the largest ethical issue affecting business owners. Catastrophic organizations can occur as a result of harassment and discrimination in the workplace. As a business owner, you need to be aware of the anti-discrimination laws and regulation that protects your employees from unjust treatment. Harassment and discrimination can arise in the following sectors.
- Â Â Â Â Race: treatment of employees should be consistent regardless of race or ethnicity.
- Â Â Â Â Disability: All staff with physical or mental disabilities should receive proper care and accommodations.
- Â Â Â Â Religion: Without exception, regardless of religion, fair justice is given.
- Â Â Â Technology
Employers can now monitor their employee’s activity on their computers and other electronic devices due to development in technological capability. Efficiency and productivity should be safeguarded by electronic surveillance. Employees should review the privacy policy to see their record performance and how they are being monitored.
- Â Â Â Social Media
The matter of employee’s activity on social media outside of work hours is one of the recent ethical challenges in business. With regards to this ethical dilemma, here are some of the questions you need to consider;
- Â Â Â Â If the employees get into a disagreement on social media, will you feel the role of a mediator?
- Â Â Â Â Is it fair to hold employees accountable for some sorts of social media posts?
- Â Â Â Â Is it legal to keep an employee who has objectionable beliefs and expresses them online?
If an employee posts an activity that seems disloyal or financially harmful to the company, he or she must be fired. Creating rules and policies that describe what is acceptable for employees to do with social media will help eliminate confusion.
It would help if you created guidelines dealing with employees’ behavior on social media paired with training sessions. This can be broadcasted via platforms such as YouTube or Twitch. It doesn’t cost anything to create a Twitch account for your post. After account creation, it’s essential to first gain some Twitch followers for your content to reach many clients. Â Also, ensure that before firing an employee due to misconduct, make sure you address the issue with other employees.
- Â Â Â Accounting issues
It is one of the critical problems facing companies today. It is a serious offense, both ethical and judicial standards, to deceive shareholders and others with a stake in your company’s finance. Consequences can be charged in fines and can lead to imprisonment, which can also lead to the company’s closure. It is important to have an honest accountant who will open over every number to ensure that your records are correct.
You should be in a position to review every financial problem and report in your company. Having an audit can also help to avoid any ethical problems in your company.
Final Words
You have to be a strong leader by acting as a role model to your employees. Learn more about your discrimination laws in your state. You need to make sure that you read up on the rules and regulations that govern a company and act accordingly. Always work with accountants to maintain transparency and honesty in your financial reports. Make sure that your company and the employees are always doing the right things.
You need to set up your employees and your business for success by creating a healthy working environment with the right people and the right leadership.
