| The term “transparency”
has been making the news in corporate scandals recently.
Many allegations of financial mismanagement involve
complex schemes that boards of directors approved, either
explicitly or tacitly. Even if many of these arrangements
might be found technically legal, the professional reputation
of those involved might be tarnished beyond repair.
Can you afford such a risk to your future?
Regulators and experts have suggested steps you can
take now to prevent such damage to your reputation.
Make your financial and professional arrangements as
transparent as possible. This doesn’t mean broadcasting
everything you do on television. It does mean looking
at your processes and procedures and asking if a concerned
stakeholder would find them enlightening or terminally
confusing. Ask whether your board of directors or advisors
is made up totally of insiders. If so, this could be
costing you valuable outside perspective and counsel,
as well as creating an image of your board as mere “rubberstampers”
of anything you do. Discuss your individual situation
with your legal advisor.
Another key step is to prove that you have as much
interest in securing long-term success for your company
as you do short-term profits. That’s an area where
we can help. By advising you on options for protecting
your financial, human, and physical assets, we can help
you establish programs that will demonstrate your commitment
to protecting your company against accidental loss.
|
