|
| |
Tone at the top is a term for the ethical climate of an organization's senior managers, board of directors and audit committee. It includes prevailing attitudes towards fiduciary duty, financial diligence, risk, compliance to the law, employees, communities and the environment.
Tone at the Top & RiskA poor ethical climate at the top of an organization tends to create risks across an organization as this tends to translate downwards. If executive managers are extremely aggressive about timing good news and bad news to maximize their compensation, the organization may do the same. If executive managers are only interested in short term gains and bury all future risks, the organization may do the same. If executive managers are out of step with the ethics of the community, organizations may be as well. As such, tone at the top may be a good predictor of the long term performance of an organization and likelihood for financial scandals, compliance violations and other failures.|
Type | | Definition | The ethical climate amongst an organization's board of directors, executive management and audit committee. | Related Concepts | |
Business Ethics
This is the complete list of articles we have written about business ethics.
If you enjoyed this page, please consider bookmarking Simplicable.
A list of issues and principles related to business ethics.
Two legal concepts that commonly collide.
A few examples of conflict of interest.
An overview of fiduciary duty.
An overview of the precautionary principle.
The primary elements of professional conduct.
The definition of accountability with examples.
Examples of common business and personal values.
The definition of agency with examples.
The definition of gaming the system with examples.
A few basic examples of compliance.
A definition of independent knowledge with an example.
A definition of segregation of duties with examples.
A definition of internal controls with examples.
The difference between conformance and compliance.
A definition of administrative burden with examples.
The definition of fair competition with examples.
The definition of insider information with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
Site Map
© 2010-2024 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
|
