Corporate Governance | Case/Opinion | Comply and Explain OR Comply or Else?

Do you think corporate governance should be enforced through the “comply and explain” model or the “comply or else” model? Explain your answer.

Student responses will vary. 


The “comply and explain” model gives corporations the benefit of the doubt and allows them to explain why they are not complying. 


The “comply or else” model is a much stricter model in which corporations are, essentially threatened to comply or face stiff financial penalties for not being in compliance.


Please state your opinion .....



Source: Ghillyer_Business Ethics A Real World Approach 2e

Corporate Governance | Discuss the payoff experienced by an organization that has a commitment to good corporate governance

Discuss the payoff experienced by an organization that has a commitment to good corporate governance. 

A corporation with a commitment to good corporate governance is more attractive to investors and creditors, and thus becomes more profitable. There have been numerous studies that highlight benefits of promoting good corporate governance.

Source: Ghillyer_Business Ethics A Real World Approach 2e