Talentsage, Monday 13 June 2022
The size and global reach of modern businesses means that the repercussions of scandals and collapses are more severe than ever. Where was the board? This is the cry that emerges among investors and in the financial press each time a company disastrously collapses or becomes enmeshed in a scandal.
The board of directors are, in principle, the guardians of the company, the people who ensure it is well-managed, financially secure and operates in the best interests of its shareholders and, increasingly, other stakeholders. Yet, time after time, when companies come crashing to the ground, it emerges that the board has failed in its fiduciary duty to the organisation to ensure it is managed responsibly and sustainably, and to all stakeholders including shareholders to ensure their interests are not harmed.