Mercury's business ethics, governance system and risk management

Seminar paper from the year 2015 in the subject Business economics - Business Ethics, Corporate Ethics, grade: 2.1, BPP University (Business School), course: MSc Accounting and Finance, language: English, abstract: Business ethics, governance system and risk management are very important issues for any organization. Lack in sufficient attention on these aspects has shown to result in the collapse of companies, such as Enron and WorldCom. The combination of effective governance and management systems and consideration of ethics during decision making will help to eliminate this threat. This report highlights Mercury¿s current governance arrangement and associated risks, and evaluates its decisions in the light of governance arrangements and ethics. Mercury¿s faces potential damages both non-financial and financial because of recent campaigning and publicity by rival newspapers about phone hacking and airbrushed photograph. As a result, the company may be involved in costly legal action, which has already happened against Mirror group, where 20 claimants took legal action against mirror group over phone hacking allegation. Readers have already started to boycott the products of Mercury, which will reduce the company¿s revenue and eventually do damage to the shareholders¿ wealth.