Which governance duty involves setting and enforcing ethical tone across the organization?

• A. Ethical oversight
• B. Compliance monitoring
• C. Strategic alignment
• D. Resource allocation

Answer: (A)

Setting and enforcing the ethical tone across an organization is a governance responsibility centered on ethical oversight. It means leaders establish expected standards of conduct, model integrity from the top, and implement policies, training, reporting channels, and accountability mechanisms so that ethical behavior is expected and practiced throughout the organization. This goes beyond simply checking whether rules are followed; it’s about shaping culture and ensuring misconduct is deterred. Compliance monitoring focuses on whether procedures are followed; strategic alignment concerns aligning governance with strategy; resource allocation deals with distributing resources. The best fit for setting and enforcing ethical tone is ethical oversight.