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 monitoring and holding top management accountable for the corporate culture, values, and ethical behavior of the organization. They are also responsible for setting compensation packages and creating policies that encourage ethical behavior. As such, the Board of Directors is the governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable. Ownership concentration and the market for corporate control are more focused on the financial performance of the organization, while executive compensation systems are important, but they are not the primary mechanism for deterring unethical behavior.

The Governance Mechanism Most Closely Connected with Deterring Unethical Behaviors