Behavioral Finance In Corporate Governance Independent Directors And Essay

Behavioral Finance In Corporate Governance Independent Directors And Non-Executive Chairs, And The Importance Of The Devils Advocate - Essay ExampleIntroductionmany employees sacrifice their careers and temper because of loyalty to their chief operating officer Loyalty is misused through with(predicate) misplaced loyalty in certain organizations. Milgram experiment Milgram experiment test innate loyalty through psychology experiment. psychological attributes of the respondents was testing in mock experiment subjects were made to electrocute stranger contrary to their own beliefs Leadership and corporate governance neo liberal corporate governance calls for different professionals in leadership restrained by laws and rules. The leaders are given different authorities to run organizations.The CEO have are appointed by the Board of the organization The boards remain loyal even to CEOs that are misguided.Many boards detest disagreeing with CEO they feel that would be perceived as dislo yalty.Dissenting peers and conflicting authorities The Milgram experiment explains how people dissent peers and conflict authority.Cases of dissenting peers voice their concerns the subjects reduce their loyalty levels to the authority.