When Is It Best for a Board of Directors to Use

question 77

Essay

When is it best for a board of directors to use a "carrot" as a governance mechanism, and when is it better to use a "stick"?

---

Definitions:

Ridicule

The act of making fun of someone or something in a cruel or harsh way, often to belittle.

Dual-Process Model

A theory explaining two distinct paths through which information processing and decision making occur: one automatic and unconscious, and the other controlled and conscious.

Conversion Effect

The phenomenon where people holding minority views influence individuals in the majority, leading to a change in beliefs or attitudes.

Contradictory Strategies

Approaches or methods that oppose each other, often leading to confusion or a lack of clear direction.