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 percent of its assets in the company's own stock.

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Rohan Kapoor · Accepted Answer

Final Answer : B, Explanation :  The balanced scorecard helps organizations deal with unethical behaviors of executives by rewarding the achievement of a variety of goals, which reduces temptation on the executive's part to gain bonuses by manipulating data. This helps to ensure that executives focus on achieving a balanced set of objectives, rather than just focusing on financial performance, and therefore reduces the likelihood of unethical behavior.

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