The set of guidelines that requires companies to abide by a set of operating standards and to explain why they choose not to refers to ________.

Question

Quizplus · Accepted Answer

The set of guidelines that requires companies to abide by a set of operating standards and to explain why they choose not to is known as "comply or explain." This approach is commonly adopted in corporate governance codes and regulations, where companies are expected to follow a certain code of conduct but are given the flexibility to deviate from it if they can provide a reasonable explanation for why they are doing so. The aim of this approach is to encourage companies to act responsibly and transparently while also allowing for some degree of flexibility and discretion.

The Set of Guidelines That Requires Companies to Abide by a Set