What does corporate accountability most directly require from a company?
Correct answer: B. Responsibility for decisions and their effects
- A. Freedom from outside evaluation
- B. Responsibility for decisions and their effects
- C. Exclusive focus on short-term earnings
- D. Secrecy about internal controls
Explanation
Corporate accountability means that a company and its decision-makers can be answerable for their actions, results and impacts. It commonly involves reporting, oversight and corrective action when standards are not met.
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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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