BCL – L1 – Q104 – Governance and ethical issues relating to business

(a) Your company, Apex Solutions Ltd, plans to undertake a rebranding exercise within the next three (3) months, and all Heads of Department are to lead the campaign. You have been asked by management to distinguish between a code of ethics and a code of conduct and explain their relevance to the accounting and audit staff.

(b) Identify any five (5) stakeholders of Apex Solutions Ltd and indicate two corporate responsibilities towards each of the five (5) stakeholders.

The code of ethics is a moral standard that Apex Solutions Ltd expects employees to follow, while a code of conduct states how the company expects employees to behave. Every organization must develop a comprehensive code of ethics to regulate the behaviour of directors, which includes the accounting and audit staff.

The stakeholders of Apex Solutions Ltd include shareholders, employees, creditors, investors, communities, Government, and customers.

In the context of good corporate governance, a corporate enterprise must recognize the rights of shareholders and protect their interests. It should respect shareholders’ right to information and respect their right to submit proposals to vote and to ask questions at the annual general body meeting.

The corporate enterprise should have good and fair employment practices and industrial relations to enhance its productivity. It must recognize the rights of workers or employees to freedom of association and free collective bargaining. Besides, it should not discriminate between various employees.

They should not supply to the consumers’ shoddy and unsafe products which may do harm to them.

To take appropriate measures to reduce the level of pollution and adopt eco-friendly technologies. To generate sufficient employment opportunities so as to make good contribution to the reduction of poverty in the country. Respect the rights of workers and other employees and take appropriate measures to ensure their safety and to improve their working conditions.