When a board does not ensure ethical standards are enforced, which governance duty is unmet?

• A. Ethical oversight
• B. Strategic planning
• C. Risk management
• D. Financial stewardship

Answer: (A)

This item tests the board’s duty to oversee ethics and integrity within the organization. The board is responsible for establishing and enforcing ethical standards—setting the tone at the top, approving codes of conduct and ethics policies, ensuring training and communication about expected behavior, and monitoring for misconduct while investigating and addressing violations. When those standards aren’t enforced, the board isn’t fulfilling its obligation to uphold ethical conduct, which undermines accountability, trust, and legal/compliance integrity across the organization.

In contrast, strategic planning focuses on long-term direction and goals, risk management concentrates on identifying and mitigating potential threats, and financial stewardship centers on safeguarding assets and ensuring accurate financial reporting. Those areas are important, but they address different governance responsibilities.