Question

1 Approved Answer

Posted on Apr 26, 2024

using pfizer 2021 annual financial report prepare a report to discuss what is corporate governance and how is it related to ethical issues by providing

using pfizer 2021 annual financial report prepare a report to discuss what is corporate governance and how is it related to ethical issues by providing examples. Based on the annual reports discuss the ethical issues that may exist and the company's corporate governance structure.

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

Corporate governance refers to the system of rules practices and processes by which a company is directed and controlled It encompasses the relationships among various stakeholders such as shareholders management the board of directors employees customers suppliers and the community at large Effective corporate governance ensures transparency accountability fairness and responsibility in decisionmaking ultimately aiming to enhance the companys longterm value and sustainability In the context of Pfizers 2021 annual financial report corporate governance plays a critical role in ensuring that the company operates ethically and responsibly Here are some key aspects of corporate governance and its relationship to ethical issues along with examples from Pfizers annual report 1 Board of Directors The board of directors is responsible for overseeing the companys strategic direction risk management and adherence to ethical standards Ethical issues may arise if the board fails to provide adequate oversight or if conflicts of interest exist among board members Pfizers annual report likely includes information about the composition of its board including the presence of independent directors and the establishment of board committees dedicated to governance audit and ethics 2 Transparency and Disclosure Transparency in financial reporting and disclosure of material information are essential for maintaining investor confidence and trust Ethical issues may arise if a company engages in misleading or fraudulent accounting practices or fails to disclose relevant information to stakeholders Pfizers annual report should provide detailed financial statements and notes along with managements discussion and analysis of the companys financial performance and risks 3 Code of Ethics and Conduct A code of ethics outlines the companys values principles and standards of behavior expected from employees and stakeholders Ethical issues may arise if employees engage in unethical conduct such as bribery corruption or conflicts of interest Pfizers annual report may include information about its code of conduct ethics training programs and mechanisms for reporting unethical behavior such as a whistleblower hotline 4 Corporate Social Responsibility CSR CSR initiatives demonstrate a companys commitment to ethical and sustainable business practices including environmental stewardship social responsibility and community engagement Ethical issues may arise if a company neglects its social and environmental responsibilities or engages in practices that harm communities or the environment Pfizers annual report may highlight its CSR initiatives such as philanthropy employee volunteerism and efforts to improve access to healthcare in underserved communities 5 Executive Compensation Executive compensation practices should align with the companys longterm performance and shareholder ... blur-text-image