Legal and Ethical Challenges for Entrepreneurs in the New Age of Scrutiny
- Tags:
- Board,
- Business Operations,
- Corporate Governance,
- Corporate Law,
- Duty,
- Entrepreneurship,
- Ewing Marion Kauffman Foundation,
- Management
- Source:
- Ewing Marion Kauffman Foundation
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Overview: Since the collapse of Enron, Arthur Andersen, Worldcom, and the investigations at AOL Time Warner, Tyco, QWest, Global Crossing and other major companies, the public's trust in corporate leaders and financial markets has been virtually destroyed - the "public" meaning employees, shareholders and bondholders. What can be done to rebuild the public's trust and confidence and get the capital markets back on track? At the heart of the solution lies the need to return to the fundamentals of what it means to serve as an executive or as board member of both a publicly traded company and a privately held growth company. Corporate governance laws created duties of care, duties of fairness duties of due diligence, duties of loyalty, and the business judgment rule to help ensure that all who serve on boards, advisory councils or committees do so primarily for the purpose of serving others. However, entrepreneurs and leaders of private companies should also be aware of the new corporate governance law, because the requirements are likely to have a "trickle down," or indirect effect, on non-public companies. There is a new emphasis on accountability and responsibility in corporate America that affects board members and executives of companies of all sizes as shareholders look for better and more informed leadership.
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Format: HTML | Date: Jan 2003 | Pages: 1
