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 | 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