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Corporate Governance Chic Hester West Sussex

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Business ethics can be denoted as unwritten or written codes of set principles, values and morals. Ethics governs the decisions and actions taken by a company. In a contemporary competitive business world, set standards are used to determine bad and good behavior in decision making. Corporate governance and corporate social responsibilities in business also falls under ethics in business.

Growing constantly and generating evolution in business is the main concern of most companies. By virtue of this, business competitiveness is generated more difficult and it is necessary to have differential factors that guide leaders to meet strategic objectives.

Company in Focus

BHP is one of the biggest companies in Australia that deals with mineral. It is aware that integrating CSR into its business will endear itself to the business. It focuses on addressing its approach to global sustainability and reducing the carbon emissions from its industries. In its annual report, it states that ethics and sustainability are core to business strategies and must be integrated to decision making.

The importance of Business Ethics

While it is true, issues of ethics generate great difficulty to be understood and even more to be put into practice by employees. It is important that all leaders question and ask the following questions:

  • Is business ethics an important issue for a company?
  • What effects does having a corporate governance system have?
  • How do I measure the efficiency of compliance programs?

 The answer to these questions will help guide the decisions of the members of corporate governance and strengthen its entire organizational structure. In this way, business ethics becomes the most important factor, as a control to prevent fraud within the organization. If employees are ethical, it is less possible that they have criminal initiatives (Boylan, 2014).

Now, the act of not establishing strong ethical facts within the organization generates a harmful product that is corruption, which is defined as the "use of power to divert the management of the public towards the private benefit (Mallin, 2013). BHP In this sense has a good organizational culture which is a main determining component of business ethics, directing people to positive changes and challenging them to contribute to the construction of a healthy culture (Jeurissen and Rijst, 2007).


Strategies that Help in Implementation of Business Ethics

Implementing a code of ethics: more than a document, a code of ethics are the guidelines that define how senior managers and employees should act whole. This code must be easily understood and disclosed to all personnel and most importantly all employees must comply with it. A violation of the contained policies will have disciplinary actions (Monks and Minow, 2011).

Communication: the main strategy when you have a code of ethics is that it does not remain on paper. The important thing is that it is known throughout the organization and that there is feedback in order to give more impetus to the implementation and that it is easily understood by the counterparts. Employees, on their part, have the duty to report, through an ethical line, the breaches of internal policies, norms and values; Likewise, third parties can present their concerns regarding acts that violate the company's ethics. (Rossouw and Van Vuuren, 2017).

BHP Billiton should establish clear, transparent and independent governance structures to ensure that none of the interested parties can interfere with the fair management of the processes, it also plays an important role in relationships such as the formation of social dialogues and the responsibility that maintains or seeks a relationship(Murthy, 2010).


 In the implementation of corporate ethics and its benefits, it is necessary to give space to corporate governance issues, its role in strengthening internal policies and the importance they have as a first line of defense in the identification and management of risks.

Benefits of Corporate Governance and Ethics

The next aspect to deal with are the benefits that corporate governance generally brings, but I want to emphasize mainly in one; which in particular seems to me the most important and that is, from the role of management, a strategic aspect to deal with. Therefore, access to financing is considered as a benefit that allows growth and welfare in companies. For BHP, "a successful corporate governance can increase companies' access to external financing, which in turn can generate more important investments, more growth and more jobs. Another important aspect that is included (Halinen and Jokela,2016.).


Business ethics is the engine and force behind successful companies. BHP has set a good precedent in business ethics in Australia and can be emulated by others in corporate governance structuring. Communication is fundamental in any project and this depends on the new measures taken the management being known by all employees.



Boylan, M. (2014). Business ethics. Chichester, U.K.: Wiley Blackwell.

Jeurissen, R. and Rijst, M. (2007). Ethics & business. Assen: Koninklijke Van Gorcum.

Mallin, C. (2010). Corporate governance. Oxford: Oxford University Press.

Mallin, C. (2013). Corporate governance. Oxford: Oxford University Press.

Monks, R. and Minow, N. (2011). Corporate governance. Chichester, West Sussex, U.K.: John

Murthy, C. (2010). Business ethics. Mumbai [India]: Himalaya Pub. House.

Rossouw, D. and Van Vuuren, L. (2017). Business ethics. Cape Town: Oxford University Press.

Shaw, W. (2017). Business ethics. Boston, MA: Cengage Learning.

Velasquez, M. (2018). Business ethics. New York: Pearson.


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