CISI Professional Practice Exam 2025 – Complete Prep Guide

Question: 1 / 400

What does effective corporate governance ensure within a company?

Maximized shareholder dividends

Ethical decision-making and accountability

Effective corporate governance is primarily focused on establishing a framework for decision-making and accountability within a company. This includes ensuring that the interests of all stakeholders, such as shareholders, employees, customers, and the broader community, are considered in the company's operations. By promoting ethical decision-making, corporate governance helps to prevent and address issues like fraud, corruption, and conflicts of interest. It creates a culture of transparency and integrity, which fosters trust and confidence among stakeholders. Additionally, accountability ensures that leaders within the organization are held responsible for their actions, further reinforcing ethical behavior and corporate responsibility. This comprehensive approach not only protects the company's reputation but also contributes to sustainable long-term performance.

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Minimized regulatory actions

Increased market share

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