A governance issue arising from the recent, highly-publicized privacy issues surrounding Facebook involves the extent to which the board should become engaged in major controversies related to a corporation’s customer base.
Corporate diversification/business model evolution are recalibrating competition and straining the effectiveness of board conflict-of-interest policies.
Recent high-profile controversies with governance implications raise the interest level on director liability risks. However, issues of liability exposure should be considered in the context of a broader scope of potential risks.
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