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| What
Does Accountability Mean for Directors and Officers of Corporations
(private, public, not-for-profit)? |
Officers and Directors of an organisation are legally liable for negligence
e.g., not exercising due diligence regarding sexual harassment, health
and safety, etc., criminal acts e.g., fraud and corruption, and violations
of legal requirements e.g., employment equity, taxation, environmental
pollution. |
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They must make sure that information and reporting systems exist to
determine the impact of the organisation’s performance and opportunities
for continuous improvement. |
Information and reporting systems must be reasonably designed
to provide Information about the organisation’s performance
– reports must be substantiated and not just good “form”
for marketing purposes.
Senior
management and the board must rely on this quality Information
for informed decision making.
The
information generated by an accountability system must be timely,
accurate and sufficient to support decisions that are in the
organisation’s best interests. |
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Officers and Directors must make informed decisions within their scope
of responsibility and accountability. |
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