As more and more firms around the world tighten their corporate governance mechanisms by setting up boards of directors made up of insiders, outsiders, and related outsiders, what will be the most likely effect on these firms' ethical standards and behavior

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damian5142 damian5142

07-04-2022
Business

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As more and more firms around the world tighten their corporate governance mechanisms by setting up boards of directors made up of insiders, outsiders, and related outsiders, what will be the most likely effect on these firms' ethical standards and behavior

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jayilych4real jayilych4real · Answer 1 · 2022-04-14T10:55:21+02:00

The most likely effect is that it will most likely deter unethical behavior among top-level managers.

What is Ethics?

This refers to the moral principles that guide an individual's behavior and conduct of activity.

Hence, we can see that based on the creation of a board of directions that tightens up corporate governance mechanisms, there would be stronger boundaries that will deter unethical behavior among top-level managers.