CBS Corporate Governance & Ethics Flashcards

A board audit committee is primarily responsible for:

Answer: Overseeing financial reporting and external auditors

The audit committee oversees financial reporting integrity, internal controls, and the relationship with external auditors.

The term 'fiduciary duty' in corporate governance means board members must:

Answer: Act in the best interests of the corporation and its shareholders

Fiduciary duty requires board members to act loyally and in good faith in the best interests of the corporation and its shareholders.

Which governance principle holds that board members should have access to accurate and timely company information?

Answer: Transparency

Transparency as a governance principle ensures board members and stakeholders receive accurate, timely, and complete information to make informed decisions.

ESG investing integrates which three factors into investment decisions?

Answer: Environmental, Social, Governance

ESG stands for Environmental, Social, and Governance — three criteria used to evaluate a company's ethical impact and sustainability alongside financial performance.

An independent board director is best described as someone who:

Answer: Has no material relationship with the company that could impair objectivity

An independent director has no material financial or personal ties to the company, enabling impartial oversight of management.

Which ethical framework evaluates business decisions based on outcomes and the greatest good for the greatest number?

Answer: Utilitarianism

Utilitarianism judges decisions based on their outcomes, favoring actions that produce the greatest overall benefit for the most people.