Under the principle of fairness in corporate governance, a company should primarily:
Correct answer: B. Treat relevant parties impartially under applicable rules
- A. Give controlling owners every benefit
- B. Treat relevant parties impartially under applicable rules
- C. Disclose information only to major investors
- D. Permit managers to ignore minority owners
Explanation
Fairness requires equitable treatment of shareholders and other relevant parties within the governing framework. Giving special treatment to controlling owners or withholding material information undermines this principle.
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About Business Ethics and Corporate Governance
Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.
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