Effective corporate governance enhances stakeholders' confidence that an organization is being managed in their best interests rather than solely in the interests of top management and certain key individuals.

Question

Quizplus · Accepted Answer

This statement is true. Effective corporate governance is important for ensuring that an organization is being managed in the best interests of all stakeholders, including shareholders, employees, customers, and suppliers, rather than just the interests of top management or key individuals.

Effective Corporate Governance Enhances Stakeholders' Confidence That an Organization Is