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Abigail Is a Member of the Board of Directors at a Large

Question 62

Multiple Choice

Abigail is a member of the board of directors at a large insurance firm. A strong believer in Aristotelian ethics, Abigail tells you she thinks that people typically will do the right thing without need for supervision or oversight. What is your best response?


A) As a member of the board, Abigail should task a lower-level employee with managerial monitoring and the guarding of shareholder interest.
B) As a member of the board, Abigail is required to monitor managerial behavior to fill her fiduciary duty to guard shareholder interests.
C) Abigail's philosophical ideals are similar to those of the Federal Sentencing Guidelines for Organizations, so she should proceed as planned.
D) Abigail should reconsider her philosophical ideals because they are in direct opposition to a business's compliance efforts.

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