Ethical Issues in Corporate Governance

A related area of emerging concern relates to ethical issues in corporate governance. The board of directors of a public corporation is expected to ensure that the business is being properly managed and that the decisions made by its senior management are in the best interests of shareholders and other stakeholders. But, in far too many cases, the recent ethical scandals alluded to above have actually started with a breakdown in the corporate governance structure.

Boards of directors are also increasingly being criticized even when they are not directly implicated in wrong doing. The biggest compliant here often relates to board independence.