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Corporate governance is a package of systems, procedures and principles through which a corporation or an institution is governed. Such procedures and principles provide vital guidelines in the manner the corporation will be directed and managed in pursuit of full compliance with its defined objectives. This makes it eminently possible for the company’s added value to the benefit of the aggregate stakeholders of the respective corporation. Such stakeholders may include internal stakeholders, for instance, employees; as well as external stakeholders, such as the society where the enterprise is based. Consequently, the institution’s management takes up the trustee role on behalf of the entire platform of the stakeholders.

As a result, the corporate governance is enshrined under the arch principles of Integrity and Fairness, Transparency, Compliance, with the laws and regulations of practice and general commitment to the undertaking business in an ethically acceptable manner. This paper therefore focuses on the analysis of some requisites of corporate governance and the enhancement of ethical principles within the working environment with the main objective of achieving the business goal. Good corporate governance enhances an irrefutable level of confidence with respect to the customers’ wit and perception towards the enterprise. In this regard, the paper will explore the management in a hospital setting with respect to Dr. DoRight in his management of the hospital operations amidst a pool of challenges.

Main Stakeholders of Dr. DoRight

Stakeholders are individuals that have something to lose or gain as a result of the outcome from the hospital. Dr. DoRight being the President of the “Universal Human Care Hospital” deals with both internal and external stakeholders on a daily basis. Internal stakeholders that Dr. DoRight has to deal with include therapists, physicians and nurses. On the other hand, external stakeholders include insurance companies, patients, competitors, suppliers and federal and state governments (Dess, 2012).

Internal stakeholders participate in decision making on the matters concerning the hospital. External stakeholders are those parties, groups or individuals outside the hospital. Patients as external stakeholders expect good value as well as high quality services (Dess, 2012). Suppliers to the hospital also have a stake since they are required to provide materials and services.

Strategies for the hospital can be developed by both the internal and external stakeholders. The internal stakeholders can participate in resourcing and coordinating strategies for the hospital. External stakeholders can be engaged where they contribute their views together with their experience in addressing the important issues. Dr. DoRight as the President of the “Universal Human Care Hospital” needs to be aware that different stakeholders in the hospital may have a common purpose of improving the quality of health care in the hospital. Stakeholders have different interests that are the key to success of the hospital (Dess, 2012).

It is important for the hospital to balance interests of various stakeholders in the hospital. Shareholders in the hospital expect it to make good profit for high returns on their investment. Employees, on the other hand, expect good working conditions and good wages.

Possible Conflict of Interest between Internal and External Stakeholders

A conflict between stakeholders arises when one group of stakeholders compromises expectations of the other group. An example is where a supplier decides to supply cheap goods in order to keep the prices low for patients. This compromises the ethics of practice that is required of suppliers (Dess, 2012).

Internal stakeholders have interests that are very important in ensuring that the hospital runs smoothly. When the hospital collapses they lose their jobs and when there is a little profit, their salaries go down as well. The interests of external stakeholders cannot be neglected because it will affect smooth running of the hospital (Goldworth & Bentham, 1983). As the President of the “Universal Human Care Hospital”, Dr. DoRight has to ensure that any conflict between internal and external stakeholders is resolved as it can lead to the fall of the hospital.

Dr. DoRight as the President of the “Universal Human Care Hospital” has a duty of loyalty in reporting all the illegal procedures by nurses and doctors in the hospital. This is because many patients have been dying due to these illegal procedures by doctors and nurses. Nurses and doctors are required to be accountable in their efforts of promoting health of the patients (Dess, 2012). As the President, Dr. DoRight has to ensure that the hospital is operating efficiently and that enough medical care is provided to the patients.

It is the responsibility of Dr. DoRight to perform his required ethical duty of reporting and initiating investigation. Nurses and doctors at the “Universal Human Care Hospital” are required to be competent in order to save the lives of patients. These are issues that can help avoid pitfalls by the hospital. Ethics in a hospital is meant to save lives, promote health at the hospital, report all the illegal practices that exist and avoid immoral and illegal activities. It is the ethical duty of Dr. DoRight as the President of the “Universal Human Care Hospital” to conduct investigations and follow up on a regular basis. It can thus be argued that Dr. DoRight has been passive for the past two years since internal investigations are not yet through as patients continue to die at the hospital (Dess, 2012).

As the President, Dr. DoRight needs to have internal investigations conducted and documented. Recommendations of the report need to be enforced to ensure that the hospital improves the quality of healthcare. Employees need to be told of their responsibilities and roles in the hospital (Finney & O'Brien, 1956).

Implication of the Principle of Deontology and Ethics

The deontology principle focuses on the adherence to moral duties and rules that are independent. By following the duty on it is said to be behaving morally and failure is considered immoral. The deontology principle stresses the reasons why some actions required to be performed. It cannot be assumed that by following the moral rules that are correct instead there is the need for right forms of motivation (Finney & O'Brien, 1956).

The deontology principle is usually criticized since it does not provide clear ways on how conflicts can be resolved. Others argue that the deontology principle is a system of disguise. The other critic of the deontology principle is that it is based on the absolute principle as well as conclusions. It is argued that there are always those interests, issues and duties that usually make things appear to be difficult (Finney & O'Brien, 1956).

The deontology moral systems are separated from the moral principles. It can thus be said that nurses and doctors have a moral duty of observing good ethics and if they do not follow it is considered to be wrong. Nurses and doctors in the hospital can offer useful information and also participate in decision making that involves ethical issues (Goldworth & Bentham, 1983). They are required to respect decisions and beliefs of others even if they tend to differ from theirs.

Deontologists usually hold to the underlying principles of wrong or right regardless of the particular circumstances. They argue that for one to be considered a moral person, they are not only required to have the best results, but also use good means accompanied by good intentions. Dr. DoRight following his own logic, can reason that the behavior of telling a lie is wrong regardless of the outcome (Goldworth & Bentham, 1983). This even if Dr. DoRight is to lie in order to protect his own position as the President of “Universal Human Care Hospital”. Hence, deontology can be considered as comforting and appealing since it has rules that can be held through all the situations.

With respect to Dr. DoRight, the mutual observance of social ethics of his doctors and nurses was inadequate, leading to increased rampancy of patients’ mortality. However, his move to curb the hazardous effect was less effective owing to minimal supervision of the procedure that was to be undertaken in addressing the challenge. As a matter of fact, the doctors and nurses’ negligence persisted, leading to continued loss of lives as a result. In summation, “Universal Human Care Hospital” suffered acute shortage of staff’s adherence to the principles underlying deontology by simply neglecting the laid down rules and regulations of duties. Dr. DoRight failed to enforce regulations of practices from the existing ethical duty leading owing to his predicament.

Implication of the Principle of Utilitarianism

Utilitarianism is based on the ability of being able to face the consequences as a result of various actions. Following the utilitarianism theory, Dr. DoRight is required to follow those choices that are to yield the best benefits. The choices that will have benefits to most of the people are considered to be ethically correct. The theory is beneficial since it can compare solutions that are similarly predicted and by the use of a point system the choice that is beneficial to most people is determined (Goldworth& Bentham, 1983).

Utilitarianism has got flaws since no single individual is able to use experiences in predicting the outcomes and also no individual is certain that the predictions are going to be true. Utilitarianism also has the ability of comparing several consequences, all against each other on one similar scale. It is worth noting that comparing material gains against gains that are intangible is not possible as it will result in qualities that differ to a larger extent (Goldworth & Bentham, 1983). Therefore, utilitarianism focuses solely on achieving the maximum good. As per the theory, the rights of an individual can be infringed so as to benefit the larger population. Utilitarian is concerned with justice, autonomy and benefiting majority of the people.

According to utilitarianism, the subject’s pleasure and pain are intent conditions which can be subjected to less or more quantification. However, Dr. DoRight contravened the principle by letting perpetration of pain and unhappiness and the consequent death of the patients through purported negligence of his staffs under his custody. However, Dr. DoRight is faced with a dilemma of making the most viable decision. As a result, he entrusts the director of Compliance and the Executive Committee with the task which later bore no fruits but resulted in the deterioration of standards.


The wholesome responsibility of the management is vital in the enhancement and realization of the corporate governance through the engagement of all mechanisms necessary for promotion and realization of the company’s objective. Consequently, the management is exclusively responsible for synchronization and perpetual coordination of various stakeholders involved in pursuit of the corporation’s objective. As in Dr. DoRight’s case, particular stakeholders in absence of corporate governance cannot work in isolation to deliver the core objective of the enterprises. Consequently, this indicates the irrefutable importance of a coordinated approach and supervision of enterprise activities with a view to hasten the achievement of the set goals.