For corporations in the United States, the board of directors plays a critical oversight role in ensuring that management is accountable for the enterprise’s success or failure in achieving its goals…
Overcoming the Challenge of Director Misconduct
In Brief
- What can corporations do to foster a positive board culture that encourages open, respectful debate among directors, while also ensuring that directors adhere to standards of appropriate conduct?
- They should agree in advance on a framework of acceptable conduct for deliberations, achieve consensus following deliberations, and share a common understanding of what is in the corporation’s best interest.
- Training, education, and director evaluations can correct unintentional director misconduct; reprimanding the director or requesting resignation are options to address intentional misconduct.
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