Analyze how establishing a strong code of ethics can influence corporate governance's ability to prevent financial misconduct.
Understand the Problem
The question is asking about the impact of a strong code of ethics on corporate governance and its effectiveness in preventing financial misconduct. It requires analysis of the provided options to determine which statement correctly explains this influence.
Answer
It sets clear expectations for ethical behavior, creating a culture of accountability.
The final answer is A. It sets clear expectations for ethical behavior, creating a culture of accountability.
Answer for screen readers
The final answer is A. It sets clear expectations for ethical behavior, creating a culture of accountability.
More Information
A strong code of ethics emphasizes transparency, accountability, and trust, which helps prevent financial misconduct by ensuring clear ethical guidelines and expectations.
Tips
A common mistake is assuming that a code of ethics allows rule-bending (Option B) rather than promoting strict adherence to ethical guidelines.
Sources
- The Code of Ethics in Corporate Governance - governanceatwork.io
- How corporate governance can prevent fraud and corruption | CGI - thecorporategovernanceinstitute.com
