Final answer:
Among the options given, a. compensation is a major ethical concern for corporate boards of directors. Boards are responsible for overseeing executive decisions and ensuring shareholder interests are protected.
Step-by-step explanation:
The question concerns a major ethical issue facing corporate boards of directors. Among the options provided, a. compensation is often considered a significant ethical concern.
Boards of directors face ethical scrutiny concerning the level and structure of compensation for executives, especially in relation to the company's performance and employee wages.
This scrutiny is part of the broader context of corporate governance, where the board is elected by shareholders and serves as the primary mechanism to oversee executive decisions and safeguard the interests of shareholders.
Failures in corporate governance, such as in the case of Lehman Brothers, have highlighted the importance of accurate financial reporting and responsible management.
The ethical dilemmas faced by boards of directors can extend to the management of various other corporate responsibilities, including social, economic, and environmental impacts.