What is one reason corporate leaders may resign from advisory boards?

Question

BlackTom AI · Accepted Answer

When considering why corporate leaders might resign from advisory boards, it's helpful to evaluate potential motivations in light of reputation and organizational risk.
Option 1: 'Due to shifts in public opinion that affect their brand reputation' — This is a plausible and common reason. If public sentiment shifts and the company’s brand could be harmed by continued association, leaders may step down to protect personal credibility and avoid negative spillovers to their own career and the firm. This reasoning aligns with how executives manage risk to reputation and stakeholder trust.
Option 2: 'To avoid stricter government regulations' — While policy landscapes can influence strategic choices, resignations from advisory boards are not typically a direct or primary lever for dodging regulations. Regulatory changes are usually addressed through compliance programs, lobbying, or corporate policy, not primarily through individual resignations from advisory roles. This makes the option less convincing as a sole or main motive.
Option 3: 'To increase profits in capitalist markets' — Resigning from an advisory board is unlikely to be a direct tactic for boosting profits. Profit optimization generally involves strategic decisions about investments, operations, pricing, or cost management. Leaving an advisory position does not inherently translate into profit increases and could even reduce access to strategic guidance, making this option an unlikely motivation.
Option 4: 'To gain more political influence' — Leaving an advisory board would typically reduce, not increase, a leader’s platform for political influence. In some cases, board associations can confer credibility and networks; stepping away might diminish those channels rather than enhance them. This makes the option an implausible motivation for resignation.
In summary, the most coherent explanation among the choices is that leaders resign due to concerns about public opinion and brand reputation, while the other options describe effects or goals that do not neatly align with the typical consequences of resignation from an advisory board.

INTL102_FA25_A00 Midterm Exam

What is one reason corporate leaders may resign from advisory boards?

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