Board Games
Scared your board may be up to no good? Take a hard look at who's serving on it.
Can you tell how likely your board is to commit fraud just bylooking at it? Not really, but an analysis by a Canadian researcherfound that the boards of businesses prosecuted for financial fraudshare some characteristics. Comparing 113 convicted companies with113 with a clean record, Paul Dunn, assistant professor ofaccounting at Ontario's Brock University, noticed corruptcompanies were more likely to have large, all-male boards servingshort tenures.
These qualities may contribute to a board culture where power isconcentrated in the hands of a few directors, usually members ofsenior management. In the case of short tenures, Dunn says,"it could be that senior management doesn't let directorsstay long enough to control decision-making."
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
This Co-Founder Was Kicked Out of Retailers for Pitching a 'Taboo' Beauty Product. Now, Her Multi-Million-Dollar Company Sells It for More Than $20 an Ounce.
-
Have You Ever Obsessed Over 'What If'? According to Scientists, You Don't Actually Know What Would Have Fixed Everything.
-
After He Was Fired From the UFC, This Former Fighter Turned His Passion Into a Thriving Business
-
Most People Don't Know These 2 Things Are Resume Red Flags. A Career Expert Reveals How to Work Around Them.
-
How One Woman Turned Pandemic-Induced Boredom and a Makeshift Garage Art Studio Into a Thriving Franchise
-
Use These 4 Self-Care Rituals for More Resilience and Less Depletion
-
Shark Tank's Barbara Corcoran Wants to Invest in 'Someone Who Probably Needs a Good Shrink Instead of a Business'
