Corporate Governance | Explain the difference between “comply or explain” and “comply or else.”

Explain the difference between “comply or explain” and “comply or else.”

The “comply or explain” method is a set of guidelines that require companies to abide by a set of operating standards or explain why they choose not to. 

The “comply or else” method is a set of guidelines that require companies to abide by a set of operating standards or face stiff financial penalties.



Source: Ghillyer_Business Ethics A Real World Approach 2e