WHAT IS ETHICS Ethics is a reflection on moral practice which concerns custom and social practice in defining what is wrong and what is right. Based on the public's question, ethics deals with feelings about whether it is right or wrong or being ethical in what the law requires. Many meanings can be used as long as it is beneficial to companies and other people. INTRODUCING CORPORATE GOVERNANCE The global financial crisis that began in 2007 has added further elements to the policy and practice of corporate governance. According to the definition of corporate governance, corporate governance refers to a system in which companies are directed and organized (Cadbury Report, 1992) or it also defines the connection between stakeholders, management and the board of directors of a company and influences the way that society functions. . Structured governance specifies the distribution of rights and responsibilities among different business participants. Nowadays, shareholders have higher expectations that companies should be managed in accordance with transparent and fair corporate governance. Corporate governance has become more important in society because many shareholders consider the lack of true and fair corporate governance, it has become one of the major challenges on how to overcome it. The corporate governance framework should ensure the strategic directions of the company, effective monitoring of management by the board and the accountability of the board to shareholders and the company. Corporate governance as a set of relationships between a company's management, shareholders, boards of directors and monitoring the company's performance. Governance is about ensuring that it is managed properly (Professor Bob Tricker, 1984). Malaysia launches Corporate Governance Code…… middle of paper…… debate on separation of powers placing strict position on CEOs and President due to the enormous power that could be centered in a single person holding the two positions. Excessive Business Risk Taking and Lack of Risk Control For taking higher business risks, investors expect higher compensation to compensate. Sometimes the company director might make a planned decision. Profits and dividends should be expected to increase if the company makes decisions that increase the extent of the risk it faces. Ethical issues and corporate governance Only corporate governance can provide a system or guidelines deemed ethical, true and fair to shareholders. It is important that the company is aware of the need to maintain a culture of good business ethics and the perception of ethical issues by external pressure groups can influence the company's reputation.