Final answer:
To reduce illegal and unethical behaviors in publicly traded companies, implementing a code of ethics, enhancing transparency and accountability, and strengthening regulatory oversight are key strategies.
Step-by-step explanation:
In order to reduce the likelihood of illegal and unethical behaviors in publicly traded companies, several strategies can be implemented:
- Implement a Code of Ethics: Companies can establish a code of ethics that outlines acceptable behavior and conduct for all employees. This code should clearly define what is considered illegal or unethical behavior and provide guidelines on how to report violations.
- Enhance Transparency and Accountability: Publicly traded companies should promote transparency by maintaining accurate and reliable financial records, conducting regular audits, and having an independent board of directors that oversees company operations.
- Strengthen Regulatory Oversight: Government regulatory bodies can play a crucial role in reducing illegal and unethical behaviors in publicly traded companies by enforcing stringent regulations, conducting regular inspections, and imposing penalties for violations.