BUS 607 Week 2 Discussions

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Duty of care is basically the directors or officers takes every measure to make sure that they do their best when performing all job tasks. The responsibilities with duty of care are being very hones ... t in all that is done, be careful and accurate with everything that is done, and have the corporation's vision and mission in mind. These duties are solely designed to protect the corporation. When the directors or officers do not perform take the corporation’s interest to heart, it can cause harm that can be detrimental. That will lead to negligence and legal actions taken. The Business Judgment Rule states that the directors and officers aren’t held liable for any mistakes of judgment and bad business decisions. They can’t insure that the business will be successful. This rule applies only when the directors and officers have made every effort to be informed of all matters of the business, had due process for their decisions, and no personal interests conflicted with the well being of the corporation. This rule protects the corporate decision makers. As long as all the rules have been followed, the directors would be in the clear from any bad choices or decisions made. The Duty of Loyalty is simply being faithful to your tasks and goals of the company. They must put aside all personal interests to the betterment of the corporation. This rule also protects the corporation. Any decisions made should be to help the corporation and not for personal gain, like trying to save your job. The officers and directors cannot compete with the corporation, take advantage of the company, use information not available to the public to make a profit, authorize a transaction that will harm the corporation, and sell control over the organization (Miller, 2014). This rule when applied, lets the corporation know that the directors and officers can be trusted to make good sound decisions on behalf of the corporation [Show More]

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