Corporate Governance and Stakeholders

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Who is responsible for overseeing management and protecting the shareholders' rights?

Internal auditors

The board of directors and its audit committee (correct)

External auditors

Operating unit management

Who has the power to influence who sits on the board and the audit committee?

Management (correct)

Shareholders

External auditors

Internal auditors

What is the primary responsibility of the board of directors in the governance framework?

To oversee management and protect shareholders' rights (correct)

To communicate with stakeholders

To manage day-to-day operations

To conduct external audits

To whom are companies accountable besides shareholders?

Society and other stakeholders Signup and view all the answers

What is the primary role of internal auditors in the governance framework?

To provide assistance to the board and management Signup and view all the answers

What is the ultimate goal of governance in a corporation?

To balance the interests of all stakeholders Signup and view all the answers

What is the primary concern of regulators in terms of organizational governance?

Ensuring compliance with relevant laws and acting responsively Signup and view all the answers

What is the primary responsibility of management in terms of financial reporting?

Ensuring accuracy and completeness of financial statements Signup and view all the answers

What is the primary focus of shareholders in terms of organizational governance?

Enhancing financial transparency and accountability Signup and view all the answers

What is the role of the board of directors in terms of organizational governance?

Overseeing the composition of the board and management incentive systems Signup and view all the answers

What is the primary concern of stakeholders in terms of organizational governance?

Protecting the interests of employees and pensioners Signup and view all the answers

What is the expectation of shareholders from management in terms of financial reporting?

Clear financial statements with full disclosure Signup and view all the answers

What is the foundation of good corporate governance?

Principles underpinned by consensus and continually developing notions of good practice Signup and view all the answers

What is the primary goal of a corporate governance framework?

To provide a context for organizations to consider their governance needs Signup and view all the answers

What is a key characteristic of good corporate governance?

A recognition of the importance of stakeholder relationships Signup and view all the answers

What is the role of the board of directors in corporate governance?

To provide a context for considering governance needs Signup and view all the answers

Why is there no simple universal formula for good governance?

Because each organization has unique governance needs Signup and view all the answers

What is a key issue in the relationship between shareholders/owners and other stakeholders?

Effective communication between stakeholders Signup and view all the answers