This research study was focused on the topic of ethics and corporate governance. The topic of ethics was very broad and this research study was pointed on ethics incentives. There are five incentives that will focus in enhancing good corporate governance. The incentives are individual- based incentives, organization- based incentives, market- based incentives, profession- based incentives, and regulatory- based incentives. The reasons why this topic was focused on is because ethics increasingly in demand in corporate sector in enhancing good corporate governance. Ethics had become organizational priority and there are many cases in the past that had become as a bad history in the corporate world such as Enron’s ethical collapse and others.
In Malaysia, most of problems of ethics come from bribery and corruption. Most of them were involved in management employees’ conflict of interest, unauthorized personal use of corporate asset, and falsely claiming sick leave or absenteeism. So, in order to curb this problem, this study will investigate incentives of ethics as one of the way to reduce unethical behavior in enhancing good corporate governance.
This study was focused on the company managers in public listed companies (listed under Bursa Malaysia Berhad) who had responsibilities in handling ethics matters in general in their company. Besides that, this study will be conducted in the Klang Valley within one and half years starting from September 2014 until December 2015. The method use for collecting the data is quantitative method (by distributing questionnaires) and run the data using the Statistical Package for Social Science (SPSS 20.0 version).
There are six research objectives and hypotheses had been underlined in this study and the expected outcome of this study is the organization- based incentives will be the most significant variable in enhancing good corporate governance. However, this study shows that the regulatory- based incentives is the most significant incentives in enhancing good corporate governance. It indicates that by imposing sanctions, penalties, and fines on organizations and individuals who engage in ethics problems, it will enhance good corporate governance.
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