Podcast
Questions and Answers
What does the term 'transparency' refer to in the context of a business organization?
What does the term 'transparency' refer to in the context of a business organization?
- The process of obtaining informed consent from stakeholders before making decisions.
- The act of ensuring that all company documents are publicly available for review.
- The practice of holding executives accountable for their financial decisions.
- The extent to which investors have access to relevant financial information about a company. (correct)
Which of the following is NOT a key aspect of accountability?
Which of the following is NOT a key aspect of accountability?
- The ability to provide a clear explanation of one's actions.
- The responsibility to take corrective action for mistakes.
- The requirement to prioritize individual goals over organizational interests. (correct)
- The willingness of stakeholders to hold individuals accountable.
Which of the following best exemplifies the concept of 'stewardship' in a company?
Which of the following best exemplifies the concept of 'stewardship' in a company?
- A shareholder who actively participates in company decision-making.
- A manager who consistently exceeds sales targets.
- A board member who advocates for greater transparency in company operations.
- A CEO who invests in sustainable practices for the company's future. (correct)
How does transparency influence price volatility in a market?
How does transparency influence price volatility in a market?
What is the primary purpose of 'fairness' in a business organization?
What is the primary purpose of 'fairness' in a business organization?
Flashcards
Accountability
Accountability
The ability to explain one's actions and performance to stakeholders.
Fairness
Fairness
Balancing interests in decision-making within an organization.
Transparency
Transparency
Access to financial information for stakeholders to make informed decisions.
Stewardship
Stewardship
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Intrinsic Salience
Intrinsic Salience
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Study Notes
Accountability
- Accountability is the ability to account for actions and performance to stakeholders.
- Stakeholders must be willing and able to hold individuals accountable.
Fairness
- Fairness in business involves balancing the interests of all parties in decision-making.
- This includes hiring, firing (including investigation), compensation, and rewards.
Transparency
- Transparency means investors have easy access to required financial information (e.g., price levels, market depth, audited reports).
- Transparency reduces price volatility by enabling all market participants to base decisions on the same data.
- Transparency was a significant theme in Pope Benedict XVI's documents, specifically appearing seven times in Caritas in Veritate.
- Transparency has individual (intrinsic/ethical) and organizational/social importance.
- In a company, transparency involves directors explaining actions to shareholders.
Stewardship
- Stewardship is the responsibility of caring for something on behalf of another.
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