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Section
Appendix
8.4

Corporate Governance

AI companies need sound corporate governance: it is essential that these firms are guided in directions that enable the creation of safe and beneficial AIs.

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Review Questions

How do shareholder versus stakeholder theories differ?

Answer:

Shareholder theory says firms should maximize shareholder value. Stakeholder theory says firms should balance shareholder interests with other stakeholders.

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What is the role of assurance in corporate governance?

Answer:

Assurance through auditing and reporting creates guarantees for stakeholders that adequate governance processes are in place and followed.

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