Is it time to review the ethics of your board of directors?

Most companies have agreements with their boards regarding ethical standards. However, board members and directors often remain unaware of some of the subtle conflicts of interest that they deal with on a regular basis. Such conflicts are prevalent at this level of governance and can cause ethical problems by distorting decision-making. This can lead to undermining the credibility of your company and in some cases the entire business ecosystem surrounding it.

As the year winds down, it is an excellent time to review where potential conflicts may lie and discuss it with the boards on which you serve. There are four potential areas where conflicts may arise; it’s a good idea to examine the questions related to each of them.

A Tier-I conflict is an actual or potential conflict between a board…