ABSTRACT
This chapter develops a conceptual framework which shows the inter-relationship among the tone at the top, organizational culture, and board effectiveness. The tone at the top is set by the senior executives and reflects the organization’s shared set of values. It provides a network of cues which governs tolerance attitude toward ethical breaches and compliance. organizational culture refers to the overall ethos, including psychological and structural elements, that affect behaviours and perceptions. Board effectiveness includes task-outcomes, board composition and leadership, attitudes, and receptiveness. In a review of the literature, we found that the tone at the top defines organizational culture, while elements of the tone at the top and board effectiveness interact with each other. The conceptual model of the hypothesized relationships serves as a platform for empirical work. The chapter concludes with strategies and recommendations for improving the tone at the top.
