By paying even the slightest attention to current events, one can see that major ethical issues are being reported in the media and simultaneously judged by public opinion. These issues include human rights violations, fraudulent bankruptcies, environmental disasters, corruption, misappropriation of public funds, the endangerment of lives and, especially these days, failing to protect the elderly. Legal compliance, in and of itself, is not enough to ensure that all decisions taken by corporate directors are ethical ones. We feel it is high time to take a closer look at the place of ethics in directors’ decision-making processes.
Some argue that the COVID-19 crisis should not have been such a sudden and significant shock, and that a global pandemic should have been on the list of foreseeable risks.1 Some governments already had relevant health measures and public policies in their tool kits, ready to deploy. This being the case, should business leaders have been better informed about the likelihood of a pandemic? Should this have been on their risk horizon? What role can directors play if they want to help the organization plan for future risks?
Continue reading “Post-COVID-19: Directors face a new set of risks in the 21st century”
Since the start of the unprecedented public health and economic crisis caused by COVID-191, directors may have felt tempted to intervene in the day-to-day management of the company or to step into a management role, especially if they are also shareholders.