Podcast
Questions and Answers
Accountability in corporate governance is mainly about auditing and improving organizational decisions and actions.
Accountability in corporate governance is mainly about auditing and improving organizational decisions and actions.
False
Transparency in an organization is solely about the sender providing information to the receiver.
Transparency in an organization is solely about the sender providing information to the receiver.
False
Corporate governance focuses on creating a culture of integrity to enhance competitiveness within the organization.
Corporate governance focuses on creating a culture of integrity to enhance competitiveness within the organization.
True
In an organization where there is alignment between standards and values, employees may fear raising or disclosing difficult issues.
In an organization where there is alignment between standards and values, employees may fear raising or disclosing difficult issues.
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Transparency requires an individual to be dishonest with themselves about the actions they are taking.
Transparency requires an individual to be dishonest with themselves about the actions they are taking.
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Study Notes
Fairness
- Fairness is the quality of being just, equitable, and impartial, overlapping with concepts of justice, equity, and morality.
- Three fundamental elements motivate people to be fair: equality, reciprocity, and optimization.
- Equality in business refers to the distribution of benefits and resources among stakeholders or the greater society.
- Reciprocity involves an interchange of giving and receiving in social relationships, with an equal effect returned.
- Optimization is the trade-off between equity (equality) and efficiency (maximum productivity).
- Discriminating on the basis of gender, race, or religion is generally considered unfair.
Accountability
- Accountability is an important part of corporate governance, ensuring workplace decisions align with a firm's stated strategic direction and compliance with ethical and legal considerations.
- Oversight provides a system of checks and balances to limit employees' and managers' opportunities to deviate from policies and strategies.
- Control is the process of auditing and improving organizational decisions and actions.
- A clear delineation of accountability helps employees, customers, investors, government regulators, and other stakeholders understand why and how the organization identifies and achieves its goals.
- Corporate governance establishes fundamental systems and processes for preventing and detecting misconduct, and for recovery and continuous improvement.
Transparency
- Transparency is about information and the ability of the receiver to have full access to the information they want.
- Transparency embodies honesty and open communication, even when it's uncomfortable to share information.
- Transparency is an individual being honest with themselves about their actions and an organization being upfront and visible about its actions.
- In an organization with aligned standards and values, there is no fear in raising or disclosing difficult issues.
- A value of honesty is consistent with the ability to act on one's concerns, or ask questions.
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Description
Test your knowledge on fairness, equality, and reciprocity. Explore the fundamental elements that motivate people to be fair and understand how these concepts overlap with justice, equity, and morality.
