Ethics programs, board involvement, and potential conflicts of interest in corporate governance

Journal of Business Ethics 32 (3):205 - 218 (2001)
Board composition, insider participation on compensation committees, and director compensation practices can potentially cause conflicts of interest between directors and shareholders. If these corporate governance structures result in situations where actions beneficial to directors do not also benefit shareholders, then shareholders may suffer.Corporate ethics programs usually address conflicts of interest that may arise in the firm''s activities. Some boards of directors take active roles in their firms'' ethics programs by actively overseeing the programs. This paper empirically examines the relationship between ethics programs and potential conflicts of interest and the relationship between board involvement in a firm''s ethics program and potential conflicts of interest.
Keywords board of directors  conflicts of interest  corporate governance  ethics programs
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DOI 10.2307/25074569
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