Corporate Governance and Ethics - Explained

The video discusses the role and influence of codes of ethics in corporate governance. While not legally binding, these codes guide internal actions and decision-making, setting standards for prioritizing corporate interests over personal ones. They can serve as a baseline for legal actions and are often required by corporate governance laws.

What is the primary role of a code of ethics within a corporation?

• To ensure personal interests are prioritized

• To replace corporate governance laws

• To govern internal actions and decision-making

• To legally bind directors to specific actions

How can a code of ethics influence decision-making in a corporation?

• By eliminating the need for corporate governance

• By establishing a duty of care and responsibility

• By legally enforcing shareholder rights

• By setting a standard for prioritizing personal interests

In what way can codes of ethics be used in legal contexts?

• As a replacement for corporate laws

• As a tool to enforce personal interests

• As a legally binding contract

• As a baseline for potential litigation

Why are codes of ethics required under certain laws?

• To eliminate the need for directors

• To ensure compliance with corporate governance procedures

• To replace the need for legal enforcement

• To prioritize personal interests over corporate interests

What is a common misconception about codes of ethics?

• They are legally binding

• They have no influence on decision-making

• They are not required under any laws

• They prioritize personal interests