It is quite interesting to note that, academic research in business ethics was a totally distinct discipline from research in corporate governance, and the application of the word 'ethics' was uncommon in available research on corporate governance. The chief responsibility of corporate governance was understood to be safeguarding the benefits of the shareholders. Because of the severance between ownership and management, and the incapability of the independent owners to supervise the performances of those managers, a possibility was available for vital strategic decisions to be taken which would advantageous for the managers to a more larger extent compared to the owners. For example, takeovers not related to the organization's core competence outcome in a bigger corporation, however, it does not result in a more profitable company all the time. Certainly, research has proved that extremely increased extent of isolated diversification normally resulted in lower profits. (Corporate Governance and Ethics).

             Till the greater part of 1990s, nevertheless, remuneration of executives was normally settled to a greater degree by the magnitude of the company compared to by what profits the company is earning. Therefore, unconnected takeovers will openly and instantly be advantageous for the upper-level managers, however may really be unfavorable in case of the stockholders. In the latter part of 1980s and initial stages of 1990s, when numerous mid and lower ranked employees in America were trimmed down, huge remuneration of the CEOs and the application of other methods which exclusively are advantageous to top level managers started to be talked about in greater detail and also in non-business news publications. Even in this present era, Fortune, Business Week, and The Wall Street Journal report about the yearly surveys of remuneration of CEOs and bonuses. .

             The matters which are normally implicated as the active crusade of the shareholder which started during the 1990s, which culminated in increased appreciation on the part of the investors regarding good corporate governance.