Question

If the primary goal of an executive is to increase the value of the organization, how does ethics and governance play into their decision-making process?

Answer 1

Ethics and governance are considered to be very important part of an organisation. These are considered to be the backbone of the organisation and using them the decision-making can be most effective.
For any organisation to increase its the value, ethics as well as good governance must be followed.

• Ethics are morals which in broader concept are norms that works towards the image building of an individual as well as an organisation. These provides a set form of rules which everyone should follow.
• Governance is the way of working particularly applicable to an organisation. It includes the corporate culture, rules, regulations and the environment of working.

In the given case " If the primary goal of an executive is to increase the value of the organization", then ethics and governance plays a very important role in decision-making process.
Ethics and governance together provides a clear view to decision making process.
According to different situations how should an executive take a decision and how it will work for the value of the organisation will be determined by the ethics and governance followed by such organisation.
Governance as well will also impact the decision-making, as if governance includes various levels of clearances then the decision-making reached can be much much better.

Value of an organisation is increased by its goodwill and an organisation will have Goodwill if it follows ethics which are in favour of consumers as well as society.