Accountability
Definition
The obligation of those managing an organization to explain their actions and financial decisions to those who own or fund it, typically directors reporting to shareholders.
Example
Example 1:
The board of directors of Access Bank Nigeria are accountable to their shareholders, every year they publish an annual report showing exactly how the bank’s funds were managed, fulfilling their legal and ethical obligation to explain their stewardship.
Example 2:
The CEO and directors of Microsoft are accountable to their millions of shareholders, each year they release detailed annual accounts and hold shareholder meetings where executives must justify their financial decisions and business performance.