Corporate governance and ethics - read in the blog of the company COREDO

Corporate governance and ethics

Updated: 03.07.2020

International law always stands by putting the human rights first when it comes to solving conflicts and making vital decisions. Human rights cannot be divided or limited by any country or cultural borders. The subjective element of this approach can be replaced by standards agreed on the international level that fit management and decision making in corporates. The model of human rights can not only assist companies in developing a higher level of trust between them and their clients or employees but also help form significant social capital.

COREDO is here to provide legal advice for those seeking it in questions of ethics and corporate governance.

What does the human rights protection require?

It is crucial to remember that managing a company means that human rights are more valuable that business interests of the company. That is why it is necessary to perform negotiations and consultations in order to take individual’s rights into consideration if that person is affected by the company’s decision.

For more legal advice on business and human right contact consultants in COREDO. We will be glad to help.

Responsibility of directors

The director’s duty is to act with respect to good faith and company’s interests. While executing their activities they also cannot neglect human rights standards and need to take them into account. Directors should familiarize themselves with the essentials of business they are working at and not forget informing the company’s shareholders about its activities on a regular basis. If a company would like to be sure that their implemented decisions are correct and just, it is worth considering the interests and rights of the individual in their business.

Without hesitation, maximalization of wealth and solely the interests of shareholders cannot be the main platform for building corporate governance. It is actually the trick and the point to use human-right method that considers interests of shareholders as well as other interested parties while formulating the company’s management code.

COREDO can act as your legal assistance for forming business relations with respect to human rights considerations.

Incorporating human rights into company’s ethical behavior

It is unfortunately not unusual today for many companies to violate certain standards related to human rights principles:

  • Openness and integrity
  • Law compliance
  • Provision of professional and fair services
  • Consideration of clients’ interests.

The point of law compliance can seem like a matter of course. Actually though it can be not so obvious as many companies do not meet this standard. The meaning of law compliance lays in the act of company confirming that it will apply the laws governing corporate relations with consideration of human rights.

If you are looking for professional assistance regarding corporate related human rights abuses, COREDO is prepared to provide you with legal advice.

In the modern world performing a wrong corporate culture is prosecuted by the law. Many countries state in their criminal laws that punishment can be applied in relation to ethical culture. The aim for this is to challenge the decision maker to think who is affected by their activities and in what way. They should always ask themselves a question, whether it is possible to avoid negative effect or whether the action sourcing the negative effect should be ceased.

Sometimes if these issues in decision-making are not addressed in a efficient way at the early stage, it can influence the future development of the company and put it at risk including factors like brand, reputation or sustainable growth.

Openness and integrity

It can only be possible to formulate a policy of transparency and accountability if the company’s corporate culture and processes are built on the basis of human rights and with respect to stakeholders’ interests. The OECD guidelines for multinational enterprises promote this approach and state that the company is not supposed to be involved in the activities that are dishonest or misleading in relation to their employees or customers.

Our legal consultants in COREDO are prepared to inform you about all aspects of implementing corporate human rights approach in your company as well as to handle any corporate human rights violations.

Justice

The decision-making process that is designed to propose a justified decision must take into consideration all interested parties’ opinions. It also needs to be verified by the company. Another factor is thinking about whether this decision would prioritize one group of stakeholders over others.

Nevertheless, it can happen that this method of human rights considerations could lead to the opposite – the injustice. The perfect example is the situation when one group’s right to freedom of speech has to be restricted in order to guarantee the other group’s security.

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