Question

3. How plausible is the argument that an officer or director involved in an accounting or ethical problem “should have learned valuable lessons from the experience” that makes them a valuable board member for other companies?

Answer 1

I agree with the argument that an officer who has been earlier involved in an ethical or accounting problem would add value to either companies as a board member. An officer who has earlier been involved in an ethical problem would have learnt many lessons from that problem. This will add to his experience as to what should or should not be done in particular situations. Also he would be aware of the principles that can be followed and the manner in which the issue can be avoided in future. All this will add to his experience and will allow him to avoid the problem in other companies. Being a board member he will be in a position to influence the culture of the company and to ensure that employees are following the ethics required.