Corporate board members devote significant time to financial
oversight and strategy, while often neglecting steps needed to
protect and promote its most important intangible asset – its
culture and reputation. The negative effects of rumors of bribery
and corruption can often be as problematics as clear accusations or
even convictions.
Corporate boards would be well advised to assess the actual and
potential impact that allegations of corruption and other unethical
conduct may have on the share price of their company including
their company's market capitalization.
Corporate directors and officers have three general legal
duties; the duty to act carefully, the duty to act loyally, and the
duty to act lawfully. First, the duty of care of corporate
directors and officers is a special case of the duty of care
imposed throughout the law under the general heading of negligence.
Laws builds on moral, policy, and experiential propositions. The
law of negligence is no
