How does corporate governance relate to professional ethics?

Good corporate governance is fundamentally linked to professional ethics because it sets forth structures and processes that not only ensure compliance with laws and regulations but also foster a culture of ethical decision-making within an organization. When governance frameworks are effectively implemented, they create a foundation for promoting transparency, accountability, and integrity, which are core components of professional ethics.

By establishing clear processes, roles, and responsibilities, good corporate governance empowers individuals within the organization to make ethical choices and hold each other accountable. This cultivates an environment where ethical behavior is encouraged and expected, aligning the organization’s operations with the values and principles of professional ethics.

The other options do not align with the essential relationship between corporate governance and professional ethics. Asserting there is no correlation overlooks how governance frameworks can significantly shape ethical standards. Focusing solely on shareholder profits misses the broader responsibilities that organizations have toward stakeholders, including ethical considerations. Finally, viewing professional ethics as secondary undermines the importance of integrating ethical principles into governance practices, which is essential for sustainable business practices and reputational management.