Answer to Question #233086 in Management for Bob

Question

Identify and discuss the most important situations that involve management's duties of loyalty, obedience, and diligence?

Answer must not be less than 700 words

Answer 1

• The duty requires them to make decisions in good faith and in a reasonably prudent manner.
• The duty of care also applies to other roles within the financial industry, including accountants, auditors, and manufacturers.
• Failure to uphold the duty of care may result in legal action by shareholders or clients.
• Along with the duty of care, the other main fiduciary duty is the duty of loyalty; the duty of loyalty seeks to prevent directors from acting against the best interests of the corporation.
• A code of ethics sets out an organization's ethical guidelines and best practices to follow for honesty, integrity, and professionalism.
• For members of an organization, violating the code of ethics can result in sanctions including termination.
• In some industries, including banking and finance, specific laws govern business conduct. In others, a code of ethics may be voluntarily adopted.
• The main types of codes of ethics include a compliance-based code of ethics, a value-based code of ethics, and a code of ethics among professionals.
• A focus on climate change has become an integral part of companies' codes of ethics, detailing their commitment to sustainability.