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Directions: Read the following passage and answer the given question:
Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.
The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.
Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.
Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.
The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.
None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.
Which of the following is TRUE as per the scenario presented in the passage?
  • a)
    Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.
  • b)
    Abuses of power are the result of rewards within organisations that encourage corruption.
  • c)
    Corporate culture determines how workers behave when being watched.
  • d)
    Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Directions: Read the following passage and answer the given question:...
(1) Incorrect – The passage does not say this about corporate governance, but states that this suffers where the allegiance of independent directors is to the officers of the company rather than the shareholders.
(2) Correct – The passage does state this when it says in paragraph 2 that “abuse of corporate power results from incentives within firms that encourage a culture of corruption”.
(3) Incorrect – This is not stated in the passage, but the opposite is stated in which the culture determines how workers behave when they are not being watched.
(4) Incorrect – This passage does not state this, but rather states that unethical companies will state to uphold a specific ethical code, but practice a different on altogether.
(5) Incorrect – The passage might imply this, but this is in reference to an example cited to support the main idea that abuses of power result from incentives that are induced from a culture of corruption.
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Community Answer
Directions: Read the following passage and answer the given question:...
Abuses of power are the result of rewards within organisations that encourage corruption
Abuses of power in companies are often a result of incentives and rewards within the organization that promote a culture of corruption. This is evident in the passage where former employees describe a 'yes man' culture where employees who pleased their bosses were the only ones to prosper.
Here are some key points to support this statement:
- Incentives for corruption: The passage mentions that incentives within firms can lead to a culture of corruption. This indicates that rewards and recognition systems within companies may inadvertently encourage unethical behavior.
- Culture of corruption: The 'yes man' culture described in the passage highlights how employees who conform to unethical practices to please their superiors are the ones who succeed. This culture perpetuates corrupt behavior within the organization.
- Disconnect between values and actions: Unethical companies often promote a value system that is not reflected in their actual practices. This disconnect between stated values and actions can create an environment where corruption thrives.
- Responsibility of top management: The passage emphasizes that the responsibility to change this culture of corruption lies with the top management. It suggests that leaders must set the tone for ethical behavior within the organization.
In conclusion, the passage highlights how abuses of power in corporations are often a result of incentives that encourage corruption and a culture that rewards unethical behavior. Addressing these underlying issues is crucial in promoting a culture of integrity and ethical conduct within organizations.
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Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Why does the author suggest that shareholders step up as owners?

Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following can be said about the current state of corporate ethics?

Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is possibly the most appropriate title for the passage?

You cannot be surprised that under the conditions of continued disappearance of functions, the unfortunate student asks: "What becomes of the mind itself? If you suppress all the functions, what is left?" In the Indian way of teaching, when you come to a difficulty, someone jumps up and asks a question. And in the commentaries, the question which raises the difficulty is always put. The answer of Patanjali is: "Then the spectator remains in his own form."Theosophy answers: "The Monad remains." It is the end of the human pilgrimage. That is the highest point to which humanity may climb: to suppress all the reflections in the fivefold universe through which the Monad has manifested his powers, and then for the Monad to realize himself, enriched by the experiences through which his manifested aspects have passed. But to the Samkhyan the difficulty is very great, for when he has only his spectator left, when spectacle ceases, the spectator himself almost vanishes. His only function was to look on at the play of mind. When the play of mind is gone, what is left? He can no longer be a spectator, since there is nothing to see. The only answer is: "He remains in his own form." He is now out of manifestation, the duality is transcended, and so the Spirit sinks back into latency, no longer capable of manifestation. There you come to a very serious difference with the Theosophical view of the universe, for according to that view of the universe, when all these functions have been suppressed, then the Monad is ruler over matter and is prepared for a new cycle of activity, no longer slave but master.All analogy shows us that as the Self withdraws from sheath after sheath, he does not lose but gains in Self- realization. Self- realization becomes more and more vivid with each successive withdrawal; so that as the Self puts aside one veil of matter after another, recognises in regular succession that each body in turn is not himself, by that process of withdrawal his sense of Self-reality becomes keener, not less keen. It is important to remember that, because often Western readers, dealing with Eastern ideas, in consequence of misunderstanding the meaning of the state of liberation, or the condition of Nirvana, identify it with nothingness or unconsciousness—an entirely mistaken idea which is apt to colour the whole of their thought when dealing with Yogic processes. Imagine the condition of a man who identifies himself completely with the body, so that he cannot, even in thought, separate himself from it—the state of the early undeveloped man—and compare that with the strength, vigour and lucidity of your own mental consciousness.The consciousness of the early man limited to the physical body, with occasional touches of dream consciousness, is very restricted in its range. He has no idea of the sweep of your consciousness, of your abstract thinking. But is that consciousness of the early man more vivid, or less vivid, than yours? Certainly you will say, it is less vivid. You have largely transcended his powers of consciousness. Your consciousness is astral rather than physical, but has thereby increased its vividness. As the Self withdraws himself from sheath after sheath, he realizes himself more and more, not less and less; Self-realization becomes more intense, as sheath after sheath is cast aside. The centre grows more powerful as the circumference becomes more permeable, and at last a stage is reached when the centre knows itself at every point of the circumference. When that is accomplished the circumference vanishes, but not so the centre. The centre still remains. Just as you are more vividly conscious than the early man, just as your consciousness is more alive, not less, than that of an undeveloped man, so it is as we climb up the stairway of life and cast away garment after garment. We become more conscious of existence, more conscious of knowledge, more conscious of Self-determined power. The faculties of the Self shine out more strongly, as veil after veil falls away. By analogy, then, when we touch the Monad, our consciousness should be mightier, more vivid, and more perfect. As you learn to truly live, your powers and feelings grow in strength.And remember that all control is exercised over sheaths, over portions of the Not-Self. You do not control your Self; that is a misconception; you control your Not-Self. The Self is never controlled; He is the Inner Ruler Immortal. He is the controller, not the controlled. As sheath after sheath becomes subject to your Self, and body after body becomes the tool of yourSelf, then shall you realize the truth of the saying of the Upanishad, that you are the Self, the Inner Ruler, the immortal.Which of the following is incorrect in the context of the passage?

You cannot be surprised that under the conditions of continued disappearance of functions, the unfortunate student asks: "What becomes of the mind itself? If you suppress all the functions, what is left?" In the Indian way of teaching, when you come to a difficulty, someone jumps up and asks a question. And in the commentaries, the question which raises the difficulty is always put. The answer of Patanjali is: "Then the spectator remains in his own form." Theosophy answers: "The Monad remains." It is the end of the human pilgrimage. That is the highest point to which humanity mayclimb: to suppress all the reflections in the fivefold universe through which the Monad has manifested his powers, and then for the Monad to realize himself, enriched by the experiences through which his manifested aspects have passed. But to the Samkhyan the difficulty is very great, for when he has only his spectator left, when spectacle ceases, the spectator himself almost vanishes. His only function was to look on at the play of mind. When the play of mind is gone, what is left? He can no longer be a spectator, since there is nothing to see. The only answer is: "He remains in his own form." He is now out of manifestation, the duality is transcended, and so the Spirit sinks back into latency, no longer capable of manifestation. There you come to a very serious difference with the Theosophical view of the universe, for according to that view of the universe, when all these functions have been suppressed, then the Monad is ruler over matter and is prepared for a new cycle of activity, no longer slave but master.All analogy shows us that as the Self withdraws from sheath after sheath, he does not lose but gains in Self- realization. Self- realization becomes more and more vivid with each successive withdrawal; so that as the Self puts aside one veil of matter after another, recognises in regular succession that each body in turn is not himself, by that process of withdrawal his sense of Self-reality becomes keener, not less keen. It is important to remember that, because often Western readers, dealing with Eastern ideas, in consequence of misunderstanding the meaning of the state of liberation, or the condition of Nirvana, identify it with nothingness or unconsciousness—an entirely mistaken idea which is apt to colour the whole of their thought when dealing with Yogic processes. Imagine the condition of a man who identifies himself completely with the body, so that he cannot, even in thought, separate himself from it—the state of the early undeveloped man—and compare that with the strength, vigour and lucidity of your own mental consciousness.The consciousness of the early man limited to the physical body, with occasional touches of dream consciousness, is very restricted in its range. He has no idea of the sweep of your consciousness, of your abstract thinking. But is that consciousness of the early man more vivid, or less vivid, than yours? Certainly you will say, it is less vivid. You have largely transcended his powers of consciousness. Your consciousness is astral rather than physical, but has therebyincreased its vividness. As the Self withdraws himself from sheath after sheath, he realizes himself more and more, not less and less; Self-realization becomes more intense, as sheath after sheath is cast aside. The centre grows more powerful as the circumference becomes more permeable, and at last a stage is reached when the centre knows itself at every point of the circumference. When that is accomplished the circumference vanishes, but not so the centre. The centre still remains. Just as you are more vividly conscious than the early man, just as your consciousness is more alive, not less, than that of an undeveloped man, so it is as we climb up the stairway of life and cast away garment after garment. We become more conscious of existence, more conscious of knowledge, more conscious of Self-determined power. The faculties of the Self shine out more strongly, as veil after veil falls away. By analogy, then, when we touch the Monad, our consciousness should be mightier, more vivid, and more perfect. As you learn to truly live, your powers and feelings grow in strength.And remember that all control is exercised over sheaths, over portions of the Not-Self. You do not control your Self; that is a misconception; you control your Not-Self. The Self is never controlled; He is the Inner Ruler Immortal. He is the controller, not the controlled. As sheath after sheath becomes subject to your Self, and body after body becomes the tool of your Self, then shall you realize the truth of the saying of the Upanishad, that you are the Self, the Inner Ruler, the immortal.Q. Which of the following is incorrect in the context of the passage?

Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer?
Question Description
Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer the given question:Corporate governance suffers in companies where the allegiance of independent directors is to the officers of the company rather than to its shareholders. To make the shareholder-board relationship more effective, we need better shareholder surveillance. Shareholders must actively step up as owners, and engage directors on corporate issues. Independent directors in general, and chairmen of all companies in particular, must participate more actively in annual general meetings by owning up to their board decisions and answering shareholder queries.The abuse of corporate power results from incentives within firms that encourage a culture of corruption. For example, former employees within a now-demised corporation described a 'yes man' culture in which only those employees who did everything to please their bosses prospered. 'Corporate culture is what determines how people behave when they are not being watched,' remarked a former managing partner of a consultancy firm. Unethical companies have typified corporate cultures that voiced their commitment to one value system while their processes and incentives reflected an entirely different value system in practice. The responsibility to change this lies with the top management.Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers. As the sociologists opine, companies must move from the 'reactive and compliance mode' of corporate ethics to the 'integrity mode', where the functions of the entire organisation are completely aligned with its value system. To achieve this, we must address the system of incentives that exists within corporations.Corporations must integrate their value systems into their recruitment programmes. They must mandate compliance with their values as a key requirement from each potential employee. They must ensure that every employee owns responsibility for accountability and ethics in every transaction. Corporations must also publicly recognise internal role models for ethical behaviour. They must reinforce exemplary ethical conduct among employees through reward and recognition programmes. Ethical standards and best practices must be applied fairly and uniformly across all levels of the organisation. Any non-compliance must be swiftly dealt with and publicised. Additionally, there should be strong whistle-blower mechanisms within the corporation for exposing unethical or illegal activities.The need of the hour is for all voices in a corporation to unanimously extol the values of decency, honesty and transparency. In other words, every employee has to appreciate that the future of the corporation is safe only if he/she does the right thing in every transaction. Corporates have to create systems, structures and incentives to promote transparency, since transparency brings accountability. In an ideal organisation every employee remembers and follows the adage, 'when in doubt, disclose'.None of this can happen unless corporate leaders believe in the values of the company, and walk the talk. Corporate leaders are powerful role models. Every employee watches them carefully and imitates them. For example, many corporations talk about cutting costs as a way to improve profitability. Such cost consciousness has to come from the top. If leaders want employees to spend carefully, they have to show the way.Which of the following is TRUE as per the scenario presented in the passage?a)Corporate governance flourishes in companies where allegiance of directors is to the company’s officers.b)Abuses of power are the result of rewards within organisations that encourage corruption.c)Corporate culture determines how workers behave when being watched.d)Unethical companies typify corporate cultures that voice commitment to one value system and their actions are within this system.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.
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