Final answer:
The guidelines that boards of firms should follow to assess their success in mitigating fines and sentences according to the Federal Sentencing Guidelines (FSG) include analyzing position descriptions and governance structure, determining the legitimacy of revenue sources, and reviewing employee development and training materials. the correct answer is D.
Step-by-step explanation:
The guidelines that should be followed by boards of firms to assess their success when mitigating eventual fines and sentences in carrying out their legal duties, according to the Federal Sentencing Guidelines (FSG), are:
Boards should analyze their position descriptions and governance structure. This means that boards should review and evaluate their roles and responsibilities, as well as the structure of the organization's governance.
Boards should determine whether customers and clients truly do pay for products and services. This involves examining the firm's revenue sources and ensuring that they come from legitimate transactions.
Boards should analyze their employee development and training materials. This includes reviewing the company's programs and initiatives for the professional growth and training of its employees.
Under the FSG, boards of firms should analyze their position descriptions and governance structure to effectively assess and mitigate potential fines and sentences.
According to the Federal Sentencing Guidelines (FSG), boards of firms can mitigate potential fines and sentences by following certain practices that demonstrate proactive and effective corporate governance. Notably, option b), boards should analyze their position descriptions and governance structure, is one approach suggested by the FSG. In contrast, options a), c), and d) are not directly related to the guidelines for boards in assessing their success in mitigating fines and carrying out their legal duties.
The board of directors, elected by shareholders, is fundamentally responsible for ensuring the firm runs in the interest of the shareholders and provides oversight of top executives. Additionally, it is crucial for the board to scrutinize and understand the financial operations of the company, a lesson underlined by the failure of corporate governance in the case of Lehman Brothers.