Why the "Tone at the Top" Matters : Best Practices for Boards of Directors of Multinational Corporations
Series
Schriften der Assistierenden der Universität St. Gallen (HSG)
ISBN
978-3-7272-2287-0
Type
book section
Date Issued
2013
Author(s)
Editor(s)
Abstract
The "tone at the top" is widely recognised as a central pillar of high-quality corporate governance. As the company's "integrity DNA" it can have a significant impact on every aspect of a company's business.
It is argued that the tone at the top has a pervasive effect on the reliability of the financial reporting processes, the quality of earnings, as well as operating performance, since all components of an organisation's control system are affected.
In addition, an organisation's tone at the top directly influences its public perception and reputation. A positive attitude of the board of directors towards a constructive tone at the top might thus lead to the best long-term interests of the company.
It is argued that the tone at the top has a pervasive effect on the reliability of the financial reporting processes, the quality of earnings, as well as operating performance, since all components of an organisation's control system are affected.
In addition, an organisation's tone at the top directly influences its public perception and reputation. A positive attitude of the board of directors towards a constructive tone at the top might thus lead to the best long-term interests of the company.
Language
English
Keywords
tone at the top
board
board of directors
best practice
best practices
multinational
multinational corporations
governance guidelines
regulatory
initatives
board attributes
board composition
board processes
HSG Classification
contribution to scientific community
Refereed
No
Book title
Multinationale Unternehmen und Institutionen im Wandel - Herausforderungen für Wirtschaft, Recht und Gesellschaft
Publisher
Stämpfli
Publisher place
Bern
Number
Bd. 8
Start page
249
End page
272
Pages
24
Subject(s)
Eprints ID
228456