Corporate Accountability

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What is Corporate Accountability? Meaning.

Corporate Accountability is a broad term that refers to the moral or legal obligation for companies of being accountable to the shareholders or Stakeholders of the organization or even to society as a whole. Stakeholders may include shareholders, employees, customers, suppliers, the local community, special interest groups and the countries or regions that the firm operates in.

In fact, one can distinguish three forms of accountability:

• Societal Accountability: each organization is seen as accountable for its actions to society in general and to specific groups or organizations within society.

• Organizational Accountability: within each organization, agents, directors and other trustees are seen as accountable for the way they represent the organization. Also, when these agents in turn appoint and control managers, these are also seen as accountable for the way they run the organization.

• Interpersonal Accountability: of one person in the organization to another, depending on informal networks, the Organizational Culture and shared values and beliefs.

Three relevant questions at all three above levels when thinking about accountability are:

• To whom is an organization or individual accountable?

• For what is this organization or individual accountable? Purpose of the organization, Shareholder Value Perspective, Stakeholder Value Perspective.

• How is the accountability organized? (Mechanisms: by law, public reporting, public pressure, election, Organization Chart and structure, corporate governance, etc).

The concept of accountability is strongly related to other concepts such as Corporate Transparency, Corporate Sustainability, Corporate Responsibility, and Corporate Governance.

Forum Forum about Corporate Accountability. Below you can ask a question about this topic, share your experiences, report a new development, or explain something. Start a new topic about Corporate Accountability Share your knowledge here (or ask a question)   🔥 NEW How Companies Should Deal with Historical Corporate Misconduct Companies that exist for many years have sometimes committed acts in the past that were allowed and considered normal at the time, but should they have occurred today would be considered as crimes or ... 10   2 comments Accountable Leadership I hope you have big shoulders? That question is not about weight lifting at a fitness gym about a personal trainer asking a client about their strength. Rather it seems to be the opinion of many sen... 6   10 comments A Case of Misapplied Accountability Principle Please share your opinion and comments on the following case: Following corporate accountability principle, when there is fund misappropriation perpetrated by a liaison officer assigned in ... 2   The Roles of Audit Committees Audit committees are typically perceived as a watchdog. However the presence of an audit committee in corporate governance alone doesn't ensure effectiveness and efficiency in corporate performance.... 1

Best Practices The best, top-rated topics about Corporate Accountability. Here you will find the most valuable ideas and practical suggestions. The Need for More Accountability in Africa In Africa accountability is a dirty word. Until accountability becomes a part of societal behavior, it will remain the dark continent. To avoid being accountable is an essential precursor to succ... 16   9 comments Corporate Accountability versus Corporate Social Responsibility How to differentiate the concepts of corporate accountability and corporate social responsibility? From my understanding: - Corporate Accountability (CA) is more like a legal obligation that... 13   4 comments Globalisation Asks for More Accountability Globalization has seen the growth of multinational business such that it is estimated that over half of the largest ‘economic units’ in the world are corporations. Where such companies acted at one ti... 13   3 comments

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Information Sources Various sources of information regarding Corporate Accountability. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops. The Board of Directors: Roles, Responsibilities and Duties Board of Directors, Corporate Governance, Board Accountability, Director Liability Presentation that elaborates on the roles and responsibilities of the board of directors. The presentation includes the ...

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Compare also: Shareholder Value Perspective  |  Stakeholder Value Perspective  |  Safe Harbor Statement  |  Whistle Blower  |  Globalization  |  Stakeholder Mapping  |  Stakeholder Analysis  |  Triple Bottom Line  |  Directors and Officers Liability Insurance

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