ACCA Applied Knowledge · Business and Technology · Governance in business organisations
Quillon plc's board publishes clear and timely information on its performance, risks and major decisions so that shareholders can assess how the directors have acted. Which governance principle is mainly being demonstrated?
The principle shown is transparency, also called openness. Transparency means the board discloses accurate, relevant and timely information about performance, risks and decisions so shareholders and other stakeholders can judge how the directors have behaved. It is about disclosure rather than the quality of the decisions themselves.
- ATransparencyCorrect
- BJudgement
- CCompetence
- DReputation
Explanation
Openness and transparency means giving relevant, accurate and timely information to stakeholders so they can evaluate the board's actions. Judgement concerns the quality of decisions made by directors, not the disclosure of information. Competence and reputation are not the principles being described.
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