If a lawsuit filed recently against Amazon is successful other companies may face suits targeting their boards and seeking court mandated changes to customer data use.
New rules require companies to set up internal reporting channels and scrutinize how they conduct investigations.
Certain words can result in positive or negative recommendations. A primer.
Every board of a Nasdaq-listed company will need to decide how it will respond to the Nasdaq rule before the 2022 proxy season—or risk being accused of tacitly agreeing with the lawsuit’s contention.
With the approval of this new rule, Nasdaq immediately sets itself apart from other stock exchanges.
Companies with ethical corporate cultures can reap several rewards, including better reputations, fewer legal headaches and higher returns.
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