Asian Business & Management

, Volume 6, Issue 2, pp 163–178 | Cite as

The Significance and Limitations of Corporate Governance from the Perspective of Business Ethics: Towards the Creation of an Ethical Organizational Culture

  • Chiaki Nakano
Article
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Abstract

The aim of this paper is the re-examination of corporate governance and business ethics at Japanese companies and the pursuit of a more desirable model, by discussing and examining the significance of and limitations to corporate governance reforms currently underway in Japan, particularly from a point of view of business ethics.

In this paper, I will present the following two combinations of a coherent corporate governance system with business ethics system:
  1. 1)

    ‘shareholder-centred governance’ and ‘the establishment of compliance-style business ethics’;

     
  2. 2)

    ‘corporate-conscience-based governance’ and ‘the establishment of business ethics through value sharing’.

     

I will argue that from the perspective of effectiveness, the latter is superior. I will also argue for the need to work towards the establishment of an ethical organizational culture.

Keywords

corporate social responsibility (CSR) corporate governance business ethics corporate conscience compliance orientation organizational culture 
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Copyright information

© Palgrave Macmillan Ltd 2007

Authors and Affiliations

  • Chiaki Nakano
    • 1
  1. 1.2-1-1 Hikarigaoka, Kashiwa-shiChibaJapan

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