Final answer:
Directors and officers of a corporation are bound by a fiduciary duty to act in the best interest of the corporation and its shareholders, ensuring that they exhibit responsible and ethically bound behavior in their corporate governance roles. The correct answer is option a.
Step-by-step explanation:
Directors and officers of a corporation have a fiduciary duty to the corporation. This duty includes acting in good faith and with a reasonable degree of care, and putting the interests of the corporation and its shareholders above their own personal interests. This fiduciary duty is an essential aspect of corporate governance and is meant to ensure that executives act responsibly and in accordance with ethical and legal standards to protect the interests of shareholders.
Corporations, while focusing on company health and profits, must adhere to their legal obligations towards shareholders. The board of directors, as the first line of governance, plays a crucial role in overseeing the actions of top executives and ensuring they meet these fiduciary obligations.