Corporate Governance and Whistle-Blowing in Business Ethics

What is the main focus of Chapter 5 in the book Business Ethics by Dr. Abdullah Rashid Al Maawali?

Who are the managers of business corporations primarily accountable to?

What is the main responsibility of the board of directors in a corporation?

Which individuals are typically categorized as inside directors in a board of directors?

What does effective board leadership encompass in a corporation?

What is the role of a corporation according to the provided text?

What determines the size of a board in the United States?

What is the average number of directors on the board of a large, publicly held U.S. firm?

What is the average number of members on the board of a small, privately-held company?

What is the role of top management in an organization?

What is the first step in disregarding the corporate governance model according to the text?

Why do some people favor merging the roles of CEO and chairman of the board?

What is fiduciary responsibility based on?

"No system of corporate governance can be totally proof against fraud or incompetence." According to this statement, what is the test for such aberrations?

Chapter 5 Overview

Chapter 5 of the book Business Ethics by Dr. Abdullah Rashid Al Maawali focuses on the accountability of managers in business corporations.

Accountability and Responsibility

Managers of business corporations are primarily accountable to their stakeholders.
The main responsibility of the board of directors in a corporation is to oversee the management of the company.

Board of Directors

Inside directors are typically categorized as top executives or managers within the company.
Effective board leadership encompasses setting the company's vision, mission, and strategy.

Role of a Corporation

A corporation's role is to maximize shareholder value while also considering the interests of other stakeholders.

Board Size and Composition

The size of a board in the United States is determined by the company's bylaws or articles of incorporation.
The average number of directors on the board of a large, publicly held U.S. firm is 10-12.
The average number of members on the board of a small, privately-held company is 3-5.

Top Management

Top management's role in an organization is to implement the strategy and vision set by the board of directors.

Corporate Governance

The first step in disregarding the corporate governance model is to ignore the checks and balances in place.
Some people favor merging the roles of CEO and chairman of the board to provide a clear leader and more efficient decision-making.
Fiduciary responsibility is based on the duty of loyalty and care to act in the best interests of the company.

Corporate Governance Challenges

No system of corporate governance can be totally proof against fraud or incompetence.
The test for such aberrations is to detect and respond to them promptly and effectively.

Test your knowledge of corporate governance and whistle-blowing in the context of business ethics. Topics include the definition of corporate governance, the accountability of managers to owners and stakeholders, and the concept of whistle-blowing. This quiz is based on the content from Chapter 5 of Dr. Abdullah Rashid Al Maawali's PhD course in Business Administration.