The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is

Question

Quizplus · Accepted Answer

The board of directors is responsible for the overall management of a company and is accountable for creating and maintaining an ethical corporate culture. The board has the authority to hire, fire, and compensate top management, and its oversight can deter unethical behaviors by holding management accountable. Thus, the board of directors is most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture. Ownership concentration, the market for corporate control, and executive compensation systems are also important governance mechanisms, but they are not directly connected to deterring unethical behaviors in the same way as the board of directors.

The Governance Mechanism Most Closely Connected with Deterring Unethical Behaviors