Raizcorp Functional Entrepreneurship | Page 48

Governance The purpose of ‘good governance’, defined by Sir Adrian Cadbury in C orporate Governance and Chairmanship: A Personal View (2002) is: “…holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, the organisation and society.” Ethics A code of ethics is a formal declaration that acts as a guide for how individuals within an organization should perform and make decisions in an ethical manner. Approximately ninety percent of the F ortune 500 firms, and roughly 50 percent of all other firms, have ethical codes. Codes of ethics generally address issues such as conflict of interest, behaviour toward opponents, confidentiality of information, gift giving, and making political donations. Social Impact Social Impact Management is the term that is used to outline the research and curricular sphere that exists at the juncture of business needs and wider societal concerns and that reflects their multifaceted interdependency. Social impact management is a way of thinking about many traditional business happenings that accepts and scrutinises this mutual interdependence between business and society. It is an acute part of any modern business curricular and research agenda because increasingly, without a refined understanding of this interdependency, neither business nor the society in which it operates can flourish.