According to Aubin, Bayen and Pierre (2011), ethical governance describes as the demonstration of positive qualities in guiding and enacting decisions in a moral and ethical fashion. Ethical governance demands exhibition of values such as openness, honesty, integrity and accountability. Aubin et al., (2011) defines organization viability as the ability of an outfit to have a long-term survival and sustained profits year after year. An organization that continues to be profitable over long period can be said to viable.
Ethical governance no doubt guarantees organizational viability. The viability aspect is contributed by the constructive organizational shaping courtesy of ethical governance. Aubin et al., (2011) explain that it is through ethical governance that an organization management practices optimum utilization of resources consequently amounting to organization success. Collin (2010) argues that governance is linked to organizational performance. Ethical governance works to dispel negative vices in an organization such as nepotism, embezzlement, corruption and mis-use of organizational resources. Eradicating such disconnects in an outfit will definitely lead to organization viability. Moreover, show of virtues such as integrity, accountability and openness results to good leadership (Jurgovan, Blair & United States, 2010). Leaders who display the values often translate to good management and consequently improved organizational performance.
Quality leadership is a concept that is born by ethical governance. As such, an organization continues to record and sustain high profits over years of its existence (Hoverstadt, 2011). Ethical governance often leads to organization stability. Investors gain confidence in such an organization. The organization gains more from investors and secures solid customer base. The overall outcome is on time realization of organizational goals and objectives, which consequently leads to organizational viability. The concept of ethical governance leads to a smooth flow of organization revenue and cost reduction, which ultimately amounts to profits sustainability and consequently viability (Aubin et al., 2011). Conclusively, the argument staged demonstrate that without ethical governance, an outfit is bound to experience decreased revenues, which downplays the concept of organization viability.
Aubin, J., Bayen, A. M., & Saint-Pierre, P. (2011). Overview and Organization. Viability Theory, 1-40. doi:10.1007/978-3-642-16684-6_1
Collin, G. J. (2010). Extending demo – control organization model – Modeling an Organization’s Viability Norms, Dysfunctions and Resilience Strategies. Proceedings of the 12th International Conference on Enterprise Information Systems. doi:10.5220/0002908704890492
Hoverstadt, P. (2011). The Fractal Organization: Creating Sustainable Organizations with the Viable System Model. Chichester: John Wiley & Sons, Ltd.
Jurgovan & Blair & United States. (2010). Health maintenance organization viability. Rockville, MD: Jurgovan & Blair.