Description
PERSONAL INFLUENCES : ~ There are various influences that shape individual ethical decision and behaviours, namely
ETHICAL BAHAVIOUR
Ethical behavior is a subset of human behavior. Human behaviour means the
attitudes, disposition and actions, exhibited by a person in a particular
circumstance. Ethical behaviour is human conduct that is guided by the moral
principles of what is good or bad in a particular circumstance,
Accountants are normally expected to behave ethically in the conduct of their
professional works. Behaving ethically means that accountants are expected to
comply with fundamental principles, standards, guidelines, rules and
regulations stipulated by the professional institute (ICAN) as well as complying
with the legal framework within their business environment. More
importantly, the accountants are expected to desist from any misconduct that
will bring the names of their institute and other members into disrepute.
Generally, it is however important to note that, ethical behaviour of a person
depends on the individual/personal influences and situational influences:
INFLUENCES ON ETHICAL BEHAVIOUR/FACTORS AFFECTING
BEHAVIOURS
A. PERSONAL INFLUENCES
There are various influences that shape individual ethical decision and
behaviours, namely
1. The Age and Gender: The age and gender of person are factors
that may influence his/her ethical decision also studies have shown
that women are more emotional on moral issues than men. However
we must note that Kohlberg has shown in his ethical moral
development theory that age has low correlation with ascendance
on ethical development level
2. Family Influence: This defines what is right or wrong for an
individual at early age in life.
3. Educational Institution: As person passes through primary,
secondary and tertiary institutions, he learned a lot and his ethical
perception varied. This consequently has that has direct effect on his
ethical decisions and behaviours.
4. Religious Organs: Institution like church, churches, shrines
attended by person influence their ethical behaviours through
various religious indoctrinations and acceptance of their faiths.
5. Peer Group : This includes the age mate, school mates, colleagues
etc. that can influence a person’s ethical behavior through acceptable
norms; failure to abide, he/she faces peer sanctions.
6. Institution/Organization Affiliation: Organization/Institution to
which are of affiliated define the acceptable and unacceptable
behaviours and values. Some employing organizations have ethical
codes for their employees.
7. Culture and Tradition: The norms and values of the society indicate
what is right and acceptable for people in the community. Otherwise,
he/she faces social sanctions
8. LAW: This defines what is legally right and wrong within a particular
business environment which a person is under a duty to comply with;
otherwise he/she faces legal sanctions.
B. SITUATIONAL INFLUENCES
The situational influences explain why an individual manifest different
ethical selfs in different situations. An individual ethical decision and
behaviors changes with situations, this observation can be explained by
a. Issues -related factors
b. Context-related factors
A. Issues related factors
These are issues on the moral considerations and moral framing, such
as:
i. Magnitude of Consequences: The degree of harms or benefits
that will result from a particular ethical decision. If either of the
consequences is high, the ethical decision is significant and if low,
it is not.
ii. Social consequences The degree at which the society with
accept or reject the ethical decision of a particular person(s). If
either of the consequences is high, the ethical decision is
significant and if low, it is not.
iii. Proximity to those affected The closer or nearer the decision
maker is close/related to those affected, the more significant the
issues involved are.
iv. Depthness/Degree of effect: Whether more people will be
affected by the ethical decision it is significant; otherwise it
insignificant.
v. Temporal Factor effect: If the effect of the ethical decision on
the issue is immediate, it is significant but if such effect will be
in future it is insignificant.
i. Also –Moral Framing
In work place, moral considerations of issues are usually based on
corporate interest. Managers of business organizations usually
avoid issues of morals while taking decision that promote corporate
objectives.
However, where the approach to moral dilemmas tends to the
‘principles-based’ (i.e ethical words like integrity, honesty, fairness,
etc are mentioned) then reframing moral decisions is inappropriate.
There are no rules to follow, therefore ethics must be discussed
and actions justified based on sound ethical judgment.
B. Context related factor
This explains how particular issues will be viewed within certain
context. The context-related factors are:
1. System or Reward
Where rewards are based oh achievement (e.g. number of sales
made) then ethical decision making may be affected. Unethical
decision may also increase where unethical behaviour is
unpunished or even supported by the organization.
2. Authority
Junior managers tend to follow instructions from senior
managers. Where senior managers make unethical decisions
these are likely to be followed by juniors. Senior management
may also provoke a climate where unethical decision making is
accepted.
Bureaucracy
Bureaucracies tend to make employees follow rules rather than
think about the ethics of decisions being made. More
bureaucracy may therefore mean a lower level of ethical
decision making — although this depends on authority — see
above.
Work Roles
Managers tend to follow the ‘work role’ expected — hence an
ethical role such as an accountant will normally find managers
behaving ethically — because that is expected. In other roles
where ethics are believed to be compromised regularly,
managers will usually also behave less ethically.
Organizational group norms and culture
Managers tend to share the norms of the group they are in, so
what may be described as unethical behaviour overall may be
‘ethical’ for the group. E.g. A group may decide that copying
work-related software at home is ‘ethical’ and therefore all
members of the group participate in this behaviour.
National and cultural context
Different countries or cultures will have different ethics.
Whether a decision is ethically correct or not may therefore
depend on the specific culture.
CONSEQUENCES OF UNETHICAL BEHAVIOURS
Consequences of unethical behaviours fall not only on the individual but also
on the profession and the society at large. Unethical behaviours include:
a. Any act or behaviour which is not in agreement with professional
conduct
b. Bahaviour outside the moral principles or ethics of a profession
c. Any act which does not follows the norms of a profession.
d. A bahaviour that negates the code of conduct guiding on operation
e. Any attitude that is not in consonance with the accepted norms
f. Conduct that is adjudged wrong, unbecoming and below expectation
g. Behaviour that is not based on moral principles
h. Deviation from standards and known norms
i. Any act that is not normally right.
See enforcement of ethical standards – P.79-80 of ICAN member book
SANCTIONS FOR UNETHICAL BEHAVIOUR
Sanction that are usually imposed on members for unethical behaviours are as
follows
(a) Reprimand/ Warning
(b) Payment of cost
(c) Fine
(d) Withdrawal of practicing license
(e) Suspension from Member List
(f) Expulsion from Member List
DISADVANTAGE TO THE PROFESSIONAL INSTITUTE AND SOCIETY
1. Ripple effect of unethical behaviours and sanction of that by family,
business & economy.
2. Negative consequence of the form stakeholders (creditors, supplier,etc.
3. Economy suffer (loss of tax, income to workers, partnership, collapse, etc
4. Negative effect on the professional and the institute
5. Society at large suffer to consequences generally
ETHICS IN CORPORATION ENVIRONMENTS
NOTE: A review of company law will be necessary to understand
better.
Corporation and its Interest
A corporation is an entity established either by enactment of law by legislature
or incorporation/registration by Corporate Affairs Commission in Nigeria. A
corporation once established is
i. A body corporate; therefore has its own district legal personality
ii. It can pursue her objectives; that is corporate objectives,
A List of forms of business – companies , corporation, partnership etc.
Corporate Objectives
Corporate objectives are relevant for the organization as a whole and are
related to key business success factors, namely:
? Profitability
? Increase in market share
? Expansion and growth
? Cash flow
? Customer satisfaction
? Quality products
? Employee welfare & good industrial relation
? Social responsibility
? Welfare of management, etc.
STAKEHOLDERS OF CORPERATION
These are groups of individuals or other corporate bodies that are affect by
the activities of the firm. These groups can be classified as follows.
1. IMMEDIATE/INTERNAL
i. Manager/Directors
ii. Employers
iii. Unions
2. CONNECTED
i. Shareholders
ii. Customers
iii. Debt holders
iv. Bank
v. Supplier/creditors
vi. Competitors
3. REMOTE. EXTERNAL
i. Regulatory Institution/Government
ii. Inland Revenue
iii. Professional bodies, where applicable
iv. Local community
v. Researches – academic, business, analysis etc.
OBJECTIVES OF EACH STAKEHOLDER
? EMPLOYEES
They strive to maximize their reward in form of pay packages, career
development, job satisfaction and continuation of employment. Risks with
this group are: refusal to relocate, pursue their selfish interest, etc.
? Managers /Directors
To maximize their rewards and continuity of the organization. Risks with
this group are: pursue their selfish interest, mismanagement, etc.
? Union
To promote the welfare of staff and continuation of employment – Risk are
strike and industrial action
? SHAREHOLDERS
Ordinary/equity shareholders provide capital and want to
a. Protect their investment
b. Maximize their wealth
c. Continuity of their investment
CUSTOMER & DEBTORS
They want quality goods at affordable prices and continuity of the
organization.
DEBTHOLDERS
They want constant returns on their investment and protection of their
investments – to receives interests & capital
BANK/SUPPLIER/CREDITORS
They want protect to loan/credit and continuity of the organization.
COMPETITORS
They want to out perform the organization and ensure its divestment from the
industry
REGULATORY BODIES/GOVERNMENT
To ensure the organization complies with government policy and standards,
raise growth and development of the economy, via increase in jobs etc
INLAND REVENUE BOARD
To collect the right taxes and continuity of the organisations
PROFESSIONAL BODIES
To ensure members complies with standards and ethical principles
LOCAL COMMUNITY
To ensure the organization is socially responsible to the people and her
environment
RESEARCHER
To gain an increased knowledge and ensure the organization promotes the
interest of her environment; both immediate and remote.
INFLUENCE OF STAKEHOLDERS
Each stakeholder can exert pressure on corporate objectives, strategy and
operations. The greater the power of a particular stakeholders, the greater her
influence on the corporate actions
STAKEHOLDERS & CONFLICT & AGENCY
Each stakeholder group have different objectives and expectations and these
sometime conflict with one another.
1. SHAREHOLDERS & MANAGEMENT
Shareholders are the owners of the corporate entity but the management
power are given to directors by law. Hence there exist conflict of interest
between
Entity Owners Management
1. Company Stakeholders Directors
2. Government
Parastatal Public Board appointed
This separation of ownership & management creates agency problems. This is
because directors may use their positions to reward themselves rather more
than increase shareholders’ wealth
AREAS MANIPULATION BY DIRECTORS
1. By making efforts to increase the profit or share price in the short term
in order to increase their rewards at the expense of long term benefits.
2. By making efforts to increase sales/revenue to show artificial
performance but without profits and there could be many debtors.
3. By embarking on empire building- creating many offices with many
staffs, this increase overhead & decrease profit
4. By resisting good takeover bid beneficial to shareholders, because that
will threaten their positions or lead to loss of their offices.
5. By embarking on creative Accounting or window dressing
ENCORAGING GOAL CONCURANCE BETWEEN DIRECTORS &
SHAREHOLDERS
i. By making performance related pay to the directors
ii. By rewarding management with shares especially when a private
company goes public at an attractive offer price
iii. By giving management share option: that to subscribe to no of company
shares at fixed price in future. The vale of the option goes up if the
shares prices of the company goes up
iv. By providing Share qualification scheme for all directors
2. SHAREHOLDER MANAGER & DEBTHOLDERS
When Management raises funds from long term creditors that will
increase the firm’s financial gearing - i.e the risk of its insolvency
increases. The debt financé requires positive cash flow to meet firm’ s
obligations of as they fall due; otherwise the securities they pledged, the
restrictive covenants they signed or the manager- receivership
agreement they signed will be invoked.
However when there is enough cash flow, the shareholders and manager
gain in form of the increase in dividends, retained profit and increase in
director remunerations.
CONFLICT AREAS BETWEEN MANAGEMENT/SHAREHOLDERS
AND DEBT HOLDERS
- Management may be interested in risky projects, using debt holders’
funds, where it succeeds they shareholders/directors gain more. Where
otherwise they will all loss their investments.
- Prolong the life of the firm is the wish of the shareholders/managers,
while debtors may wish to liquidate the firm for their return of their
capital and interest. Managers may seek further loan and increase the
company’s gearing and risk at the expenses of the debtholders and
increase the operating leverage.
- Even through, there are loans restrictions/convenants, the manager may
pay high dividends to shareholders just to maintain/secure their
appointments but at the expense of the debtholders interest. Whereas
the company’s capital undermined/reduced.
SHAREHOLDER MANAGERS & GOVERNMENDT
Government may not have direct interest in corporate entities, but have
strong interest in the company affairs as follows:
i. Taxation; Tax on profit, VAT and Withholding Tax
ii. Government funds/grants; Government provides funds/grants and
give tax incentives in some priority sectors,
iii. Wider Spread of members through privatizations and regulations of
public companies
iv. Legislation: Government may influence to relationship among
stakeholder via legislation & regulation
v. Economic Policy: Government economic Policy acting affect corporate
interest i.e monetary fiscal policy affect interest rate inflation economic
growth employment etc.
doc_418613261.docx
PERSONAL INFLUENCES : ~ There are various influences that shape individual ethical decision and behaviours, namely
ETHICAL BAHAVIOUR
Ethical behavior is a subset of human behavior. Human behaviour means the
attitudes, disposition and actions, exhibited by a person in a particular
circumstance. Ethical behaviour is human conduct that is guided by the moral
principles of what is good or bad in a particular circumstance,
Accountants are normally expected to behave ethically in the conduct of their
professional works. Behaving ethically means that accountants are expected to
comply with fundamental principles, standards, guidelines, rules and
regulations stipulated by the professional institute (ICAN) as well as complying
with the legal framework within their business environment. More
importantly, the accountants are expected to desist from any misconduct that
will bring the names of their institute and other members into disrepute.
Generally, it is however important to note that, ethical behaviour of a person
depends on the individual/personal influences and situational influences:
INFLUENCES ON ETHICAL BEHAVIOUR/FACTORS AFFECTING
BEHAVIOURS
A. PERSONAL INFLUENCES
There are various influences that shape individual ethical decision and
behaviours, namely
1. The Age and Gender: The age and gender of person are factors
that may influence his/her ethical decision also studies have shown
that women are more emotional on moral issues than men. However
we must note that Kohlberg has shown in his ethical moral
development theory that age has low correlation with ascendance
on ethical development level
2. Family Influence: This defines what is right or wrong for an
individual at early age in life.
3. Educational Institution: As person passes through primary,
secondary and tertiary institutions, he learned a lot and his ethical
perception varied. This consequently has that has direct effect on his
ethical decisions and behaviours.
4. Religious Organs: Institution like church, churches, shrines
attended by person influence their ethical behaviours through
various religious indoctrinations and acceptance of their faiths.
5. Peer Group : This includes the age mate, school mates, colleagues
etc. that can influence a person’s ethical behavior through acceptable
norms; failure to abide, he/she faces peer sanctions.
6. Institution/Organization Affiliation: Organization/Institution to
which are of affiliated define the acceptable and unacceptable
behaviours and values. Some employing organizations have ethical
codes for their employees.
7. Culture and Tradition: The norms and values of the society indicate
what is right and acceptable for people in the community. Otherwise,
he/she faces social sanctions
8. LAW: This defines what is legally right and wrong within a particular
business environment which a person is under a duty to comply with;
otherwise he/she faces legal sanctions.
B. SITUATIONAL INFLUENCES
The situational influences explain why an individual manifest different
ethical selfs in different situations. An individual ethical decision and
behaviors changes with situations, this observation can be explained by
a. Issues -related factors
b. Context-related factors
A. Issues related factors
These are issues on the moral considerations and moral framing, such
as:
i. Magnitude of Consequences: The degree of harms or benefits
that will result from a particular ethical decision. If either of the
consequences is high, the ethical decision is significant and if low,
it is not.
ii. Social consequences The degree at which the society with
accept or reject the ethical decision of a particular person(s). If
either of the consequences is high, the ethical decision is
significant and if low, it is not.
iii. Proximity to those affected The closer or nearer the decision
maker is close/related to those affected, the more significant the
issues involved are.
iv. Depthness/Degree of effect: Whether more people will be
affected by the ethical decision it is significant; otherwise it
insignificant.
v. Temporal Factor effect: If the effect of the ethical decision on
the issue is immediate, it is significant but if such effect will be
in future it is insignificant.
i. Also –Moral Framing
In work place, moral considerations of issues are usually based on
corporate interest. Managers of business organizations usually
avoid issues of morals while taking decision that promote corporate
objectives.
However, where the approach to moral dilemmas tends to the
‘principles-based’ (i.e ethical words like integrity, honesty, fairness,
etc are mentioned) then reframing moral decisions is inappropriate.
There are no rules to follow, therefore ethics must be discussed
and actions justified based on sound ethical judgment.
B. Context related factor
This explains how particular issues will be viewed within certain
context. The context-related factors are:
1. System or Reward
Where rewards are based oh achievement (e.g. number of sales
made) then ethical decision making may be affected. Unethical
decision may also increase where unethical behaviour is
unpunished or even supported by the organization.
2. Authority
Junior managers tend to follow instructions from senior
managers. Where senior managers make unethical decisions
these are likely to be followed by juniors. Senior management
may also provoke a climate where unethical decision making is
accepted.
Bureaucracy
Bureaucracies tend to make employees follow rules rather than
think about the ethics of decisions being made. More
bureaucracy may therefore mean a lower level of ethical
decision making — although this depends on authority — see
above.
Work Roles
Managers tend to follow the ‘work role’ expected — hence an
ethical role such as an accountant will normally find managers
behaving ethically — because that is expected. In other roles
where ethics are believed to be compromised regularly,
managers will usually also behave less ethically.
Organizational group norms and culture
Managers tend to share the norms of the group they are in, so
what may be described as unethical behaviour overall may be
‘ethical’ for the group. E.g. A group may decide that copying
work-related software at home is ‘ethical’ and therefore all
members of the group participate in this behaviour.
National and cultural context
Different countries or cultures will have different ethics.
Whether a decision is ethically correct or not may therefore
depend on the specific culture.
CONSEQUENCES OF UNETHICAL BEHAVIOURS
Consequences of unethical behaviours fall not only on the individual but also
on the profession and the society at large. Unethical behaviours include:
a. Any act or behaviour which is not in agreement with professional
conduct
b. Bahaviour outside the moral principles or ethics of a profession
c. Any act which does not follows the norms of a profession.
d. A bahaviour that negates the code of conduct guiding on operation
e. Any attitude that is not in consonance with the accepted norms
f. Conduct that is adjudged wrong, unbecoming and below expectation
g. Behaviour that is not based on moral principles
h. Deviation from standards and known norms
i. Any act that is not normally right.
See enforcement of ethical standards – P.79-80 of ICAN member book
SANCTIONS FOR UNETHICAL BEHAVIOUR
Sanction that are usually imposed on members for unethical behaviours are as
follows
(a) Reprimand/ Warning
(b) Payment of cost
(c) Fine
(d) Withdrawal of practicing license
(e) Suspension from Member List
(f) Expulsion from Member List
DISADVANTAGE TO THE PROFESSIONAL INSTITUTE AND SOCIETY
1. Ripple effect of unethical behaviours and sanction of that by family,
business & economy.
2. Negative consequence of the form stakeholders (creditors, supplier,etc.
3. Economy suffer (loss of tax, income to workers, partnership, collapse, etc
4. Negative effect on the professional and the institute
5. Society at large suffer to consequences generally
ETHICS IN CORPORATION ENVIRONMENTS
NOTE: A review of company law will be necessary to understand
better.
Corporation and its Interest
A corporation is an entity established either by enactment of law by legislature
or incorporation/registration by Corporate Affairs Commission in Nigeria. A
corporation once established is
i. A body corporate; therefore has its own district legal personality
ii. It can pursue her objectives; that is corporate objectives,
A List of forms of business – companies , corporation, partnership etc.
Corporate Objectives
Corporate objectives are relevant for the organization as a whole and are
related to key business success factors, namely:
? Profitability
? Increase in market share
? Expansion and growth
? Cash flow
? Customer satisfaction
? Quality products
? Employee welfare & good industrial relation
? Social responsibility
? Welfare of management, etc.
STAKEHOLDERS OF CORPERATION
These are groups of individuals or other corporate bodies that are affect by
the activities of the firm. These groups can be classified as follows.
1. IMMEDIATE/INTERNAL
i. Manager/Directors
ii. Employers
iii. Unions
2. CONNECTED
i. Shareholders
ii. Customers
iii. Debt holders
iv. Bank
v. Supplier/creditors
vi. Competitors
3. REMOTE. EXTERNAL
i. Regulatory Institution/Government
ii. Inland Revenue
iii. Professional bodies, where applicable
iv. Local community
v. Researches – academic, business, analysis etc.
OBJECTIVES OF EACH STAKEHOLDER
? EMPLOYEES
They strive to maximize their reward in form of pay packages, career
development, job satisfaction and continuation of employment. Risks with
this group are: refusal to relocate, pursue their selfish interest, etc.
? Managers /Directors
To maximize their rewards and continuity of the organization. Risks with
this group are: pursue their selfish interest, mismanagement, etc.
? Union
To promote the welfare of staff and continuation of employment – Risk are
strike and industrial action
? SHAREHOLDERS
Ordinary/equity shareholders provide capital and want to
a. Protect their investment
b. Maximize their wealth
c. Continuity of their investment
CUSTOMER & DEBTORS
They want quality goods at affordable prices and continuity of the
organization.
DEBTHOLDERS
They want constant returns on their investment and protection of their
investments – to receives interests & capital
BANK/SUPPLIER/CREDITORS
They want protect to loan/credit and continuity of the organization.
COMPETITORS
They want to out perform the organization and ensure its divestment from the
industry
REGULATORY BODIES/GOVERNMENT
To ensure the organization complies with government policy and standards,
raise growth and development of the economy, via increase in jobs etc
INLAND REVENUE BOARD
To collect the right taxes and continuity of the organisations
PROFESSIONAL BODIES
To ensure members complies with standards and ethical principles
LOCAL COMMUNITY
To ensure the organization is socially responsible to the people and her
environment
RESEARCHER
To gain an increased knowledge and ensure the organization promotes the
interest of her environment; both immediate and remote.
INFLUENCE OF STAKEHOLDERS
Each stakeholder can exert pressure on corporate objectives, strategy and
operations. The greater the power of a particular stakeholders, the greater her
influence on the corporate actions
STAKEHOLDERS & CONFLICT & AGENCY
Each stakeholder group have different objectives and expectations and these
sometime conflict with one another.
1. SHAREHOLDERS & MANAGEMENT
Shareholders are the owners of the corporate entity but the management
power are given to directors by law. Hence there exist conflict of interest
between
Entity Owners Management
1. Company Stakeholders Directors
2. Government
Parastatal Public Board appointed
This separation of ownership & management creates agency problems. This is
because directors may use their positions to reward themselves rather more
than increase shareholders’ wealth
AREAS MANIPULATION BY DIRECTORS
1. By making efforts to increase the profit or share price in the short term
in order to increase their rewards at the expense of long term benefits.
2. By making efforts to increase sales/revenue to show artificial
performance but without profits and there could be many debtors.
3. By embarking on empire building- creating many offices with many
staffs, this increase overhead & decrease profit
4. By resisting good takeover bid beneficial to shareholders, because that
will threaten their positions or lead to loss of their offices.
5. By embarking on creative Accounting or window dressing
ENCORAGING GOAL CONCURANCE BETWEEN DIRECTORS &
SHAREHOLDERS
i. By making performance related pay to the directors
ii. By rewarding management with shares especially when a private
company goes public at an attractive offer price
iii. By giving management share option: that to subscribe to no of company
shares at fixed price in future. The vale of the option goes up if the
shares prices of the company goes up
iv. By providing Share qualification scheme for all directors
2. SHAREHOLDER MANAGER & DEBTHOLDERS
When Management raises funds from long term creditors that will
increase the firm’s financial gearing - i.e the risk of its insolvency
increases. The debt financé requires positive cash flow to meet firm’ s
obligations of as they fall due; otherwise the securities they pledged, the
restrictive covenants they signed or the manager- receivership
agreement they signed will be invoked.
However when there is enough cash flow, the shareholders and manager
gain in form of the increase in dividends, retained profit and increase in
director remunerations.
CONFLICT AREAS BETWEEN MANAGEMENT/SHAREHOLDERS
AND DEBT HOLDERS
- Management may be interested in risky projects, using debt holders’
funds, where it succeeds they shareholders/directors gain more. Where
otherwise they will all loss their investments.
- Prolong the life of the firm is the wish of the shareholders/managers,
while debtors may wish to liquidate the firm for their return of their
capital and interest. Managers may seek further loan and increase the
company’s gearing and risk at the expenses of the debtholders and
increase the operating leverage.
- Even through, there are loans restrictions/convenants, the manager may
pay high dividends to shareholders just to maintain/secure their
appointments but at the expense of the debtholders interest. Whereas
the company’s capital undermined/reduced.
SHAREHOLDER MANAGERS & GOVERNMENDT
Government may not have direct interest in corporate entities, but have
strong interest in the company affairs as follows:
i. Taxation; Tax on profit, VAT and Withholding Tax
ii. Government funds/grants; Government provides funds/grants and
give tax incentives in some priority sectors,
iii. Wider Spread of members through privatizations and regulations of
public companies
iv. Legislation: Government may influence to relationship among
stakeholder via legislation & regulation
v. Economic Policy: Government economic Policy acting affect corporate
interest i.e monetary fiscal policy affect interest rate inflation economic
growth employment etc.
doc_418613261.docx