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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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. 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 can be said about the current state of corporate ethics?a)The need is for all voices to extol values of decency, honesty and transparency.b)Unethical companies practise a code of ethics, which is in accord with its written code.c)Companies tend to work within a reactive and compliance mode.d)“Yes-men” dominate corporations.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CAT tests.