BCL – L1 – SA – Q12 – Governance and Ethical Issues

What is the main purpose of corporate governance?

A   Maximizing shareholder profits

B   Ensuring ethical business conduct and accountability

C   Avoiding government regulations

D   Minimizing employee rights

B

Explanation:

Corporate governance aims to ensure ethical business conduct and accountability to stakeholders, promoting transparency and integrity. It is not primarily about maximizing profits (A), avoiding regulations (C), or minimizing rights (D). Option B is correct.