How does the balanced scorecard help organizations deal with unethical behaviors of executives?
A) It allows companies to deduct executive pay that exceeds $1 million.
B) Rewarding the achievement of a variety of goals reduces temptation on the executive's part to gain bonuses by manipulating data.
C) It encourages executives to hold on to their stock options when the company is undergoing financial problems.
D) It forces executives to focus on company's long-term success because funds in ESOP are guaranteed by the Pension Benefit Guarantee Corporation.
E) In a balance scorecard, maximum points are given to ethical behavior.

Question

Quizplus · Accepted Answer

The balanced scorecard approach involves setting and measuring goals in multiple areas, including financial, customer, internal processes, and learning and growth. By rewarding achievement in a variety of areas, it reduces the temptation for executives to manipulate data or engage in unethical behavior in order to achieve financial goals or receive bonuses. The balanced scorecard does not directly address other unethical behaviors such as fraud or embezzlement.

How Does the Balanced Scorecard Help Organizations Deal with Unethical