Governance Regulations and Ethics in the UK Essay

Governance Regulations and Ethics in the UK - Essay Example Governance Regulations and Ethics Task 1: Economic Recession 1.0 Introduction In the book, in chapter one, there is a lot of emphasis on corporate responsibility towards ethical issues in management so as to conform to international set standards where the guidelines and management principles that conform across countries and cultures. In the film, it is clear that most countries especially America made attempts to set into place control mechanisms through various acts so as to ensure honest and moral conduct in business. The book brings into focus the dishonest by the investment companies when they undertook to promote internet stock companies they were quite aware would fail. This was in an attempt to precipitate the crisis by, in fact, defrauding innocent investors. This resulted in derivatives. This is an outright case of dishonest as business terms require such loyalty and obligation in the management of the corporations by people charged with the responsibility whether CEOs or employees. 2.0 Issues in the Movie Covered in the Existing Corporate Codes 2.1 The UK Corporate Governance Code of the year 2010 The UK Cooperate Governance Code of the year 2010 is mainly included with the aim of establishing a well a created board of governors for accompany or corporation through principles and rules, as opposed to rigid rules. The main Aim of the code is to ensure proper directorship of companies through the underlying principles of accountability, transparency, probity, and insight into sustainable success. It is clear that the financial crisis as reported in the movie, â€Å"The Inside Job’ was as a result of management of the business with the aim of success but without consideration of the eventual effect of such practices, which were fraudulent, in nature. This is in the book which defines better and acceptable ethical practices in the corporate world 2.2 Flaws in the Implementation of the Code Although the code in section 4 about governance sets out the moral practices of an organization through sound and upright board behavior, implementation, and adherence are not a guarantee. This is evident in the movie since the CEOs of the investment companies did not actually follow the guidelines, though they existed. The Lehman Brothers, for instance, ignored the moral and ethical guidelines and continued promoting borrowing to firms without the capability to remain in the market with that clearly in their knowledge. The firm had to crumble and come down in 2008. 2.3 Role of corporate Leadership in Disregarding the Code Leadership of the chairman of a board, the support is given to and by the chief executive officer and the openness and frankness to discussions by the directors is the key in this endeavor according to the governance code.