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Integrity - use of values or principles to guide action in the situation at hand.

Below are links and discussion related to the values of freedom, hope, trust, privacy, responsibility, safety, and well-being, within business and government situations arising in the areas of security, privacy, technology, corporate governance, sustainability, and CSR.

Cutting the risk for directors, 4.12.03

NATIONAL POST: D. Udo Nixdorf, Financial Post

The growth of Directors and Officers Insurance is a cornerstone tool to improve corporate governance, which is necessary to satisfy the demands of corporate and organizational stakeholders and legislatures alike.

The old-time boards of directors are often pictured as a cozy group of insiders who were theoretically entrusted to look out for shareholders and provide objective diligence on the actions of management. But in practice, many may have had a hard time doing so. Dissatisfaction led to both federal and provincial legislation that made directors personally vulnerable for certain organizational economic losses.

Currently, more than 160 separate statutory provisions in Canada impose personal liability on a corporate director, many without requiring wrongdoing or fault, even a breach of a standard of care or bad faith. For organizations to attract quality directors, directors need protection, especially since directors fees are completely out of proportion to the risk and liability they assume.

Directors and Officers Insurance, introduced some 20 years ago, protects directors from legal actions or suits regarding management decisions of which they may not even be aware. Certainly they need protection for liabilities such as wages, accrued vacation pay and taxes that the organization cannot pay. Stakeholders today are demanding, even threatening legal action to get improved governance.



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"We shall need compromises in the days ahead, to be sure. But these will be, or should be, compromises of issues, not principles. We can compromise our political positions, but not ourselves. We can resolve the clash of interests without conceding our ideals. And even the necessity for the right kind of compromise does not eliminate the need for those idealists and reformers who keep our compromises moving ahead, who prevent all political situations from meeting the description supplied by Shaw: "smirched with compromise, rotted with opportunism, mildewed by expedience, stretched out of shape with wirepulling and putrefied with permeation.
Compromise need not mean cowardice. .."

John Fitzgerald Kennedy, "Profiles in Courage"


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