Monitoring of the firm by stakeholders and other parties such as NGOs tends to decrease the moral cost of violating ethics standards or shying away from moral duties.

Question

Quizplus · Accepted Answer

Monitoring by stakeholders and NGOs increases the moral and reputational costs of violating ethics standards, as it puts the firm's actions under scrutiny, encouraging better compliance with ethical norms.

Monitoring of the Firm by Stakeholders and Other Parties Such