Dealing With Director’s Abuse of Power
Question: With great power, comes great responsibility. But what happens if those with the power to ensure stringent corporate governance, bends the rules to attain his personal goals or returns a friend’s favor, that conflicts with the company’s well-being.
If a non-[profit] executive director, who is heading the Audit Committee of a listed company – is known to be acting upon personal goals than the company’s benefit, is there a process by which ‘mis-use of authority’ exhibited can be curtailed.
Are there any red-flags where such behavior is exposed?
Answer:
Nonprofit executives (as wells a corporate executives) often times place themselves in some dangerous positions by taking advantage of and abusing their power which can have a devastating impact on an organization. This type of behavior should not be tolerated. Here are a few solutions to the problem you stated:
1. First, an executive director should not be heading up …