In case the citizens might lose confidence in the business due to extensive substandard corporate governance, the outcome could be that the common investor will search for scope other than the stock market. Episodes, in the bygone few years have displayed that an existence has been found about a deep bonding between business ethics and corporate governance. The activities of a company's top executives impact the lives of several people, not merely shareholders. The arena of corporate governance is appreciating that it is stakeholders, not merely shareholders, whose privileges should be safeguarded. (Corporate Governance and Ethics).

             The position of U.S. corporations was a vital point in time in which a growing amount of scams have impaired their standing as socially accountable entities. (Center for Corporate Governance and Ethics) The Enron debacle has impacted not just the assets of its shareholders, but also even the fate of its staff, and also the Houston community in which it was situated. The domino effects of Enron, Arthur Andersen, Tyco, and other scandals at high places are witnessed presently in the stock market, our country and the employment prospects of our fresh graduates passing out of colleges, and maybe the most enduring in its detriment - in public skepticism, disbelief, and antipathy with the business community. (Corporate Governance and Ethics) The trust among investors was at its nadir, leading in persistent confusion in the financial markets and a smothering of economic turnaround. (Center for Corporate Governance and Ethics) Considerable sums of invested monies vanished because of accusations of misappropriation at the corporate level and misuse at the internal level. The accusations of scams and a broad discernment of doubt and indecision were unswervingly hindering the capability of enterprises to fight, create fresh jobs and better our economy. (Corporate Governance: Codes of Ethics to Guide Corporate Conduct) .