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) It ensures that by rewarding the achievement of a variety of goals,temptation on the executive's part to gain bonuses by manipulating data are reduced.
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 the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation.
E) It mandates that an ESOP invest at least 51% of its assets in the company's own stock.

Question

Quizplus · Accepted Answer

The balanced scorecard measures performance based on a variety of goals, including not just financial goals, but also customer satisfaction, employee development, and social responsibility. By rewarding executives for achieving a range of goals, rather than just financial ones, the temptation for executives to engage in unethical behavior to manipulate financial data is reduced.

How Does the Balanced Scorecard Help Organizations Deal with Unethical