The role of the board of directors in ensuring a culture of integrity

Elms, Natalie & Nicholson, Gavin J. (2013) The role of the board of directors in ensuring a culture of integrity. In Amann, Wolfgang & Stachowicz-Stanusch, Agata (Eds.) Integrity in Organizations. Palgrave Macmillan, Hampshire, United Kingdom, pp. 526-540.

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Abstract

Corporate scandals are as old as the corporate form itself. Consider, for example, the controversies surrounding the role of one of the first modern corporations, the British East India Company, in the Bengal famine of 1770 and in the Chinese opium trade. Yet it is the increasing scale and scope of unethical acts carried out by individuals in the name, and interests, of corporations that continue to be concerning. Recent revelations surrounding the extent of bribery and covert surveillance used by News Corporation journalists in its British operations continue to shock the world and undermine confidence in that organiszation and journalists in general. Yet despite the systemic nature of many of these unethical activities, corporate leaders generally plead ignorance when transgressions come to light. During the enquity into the News Corporation scandal, Rupert Murdoch, the CEO and chairman, rejected the assertion that he was ultimately 'responsible for this whole fiasco' (House of Commons, 2011, Q.230). Instead, like many corporate leaders before him, Murdoch placed blame on the employees within the newspaper. His responses poses an increasingly important question: Do corporate leaders bear responsibility for the conduct of individuals within a corporation and, if so, why?

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ID Code: 60841
Item Type: Book Chapter
Keywords: Role of board of directors, Culture, Corporate scandals
ISBN: 9781137280343
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Deposited On: 19 Jun 2013 02:27
Last Modified: 15 Oct 2014 02:03

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