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Old 09-04-2012, 01:51 PM   #10
Join Date: Mar 2012
Posts: 469

Originally Posted by MarTennis View Post
No one can "prohibit" it. It is a function of business ethics and standards. If ESPN or say USTA implemented conflict of interest guidelines that addressed the conflict issues that exists, then Cahill would need to choose what interest best served him without carrying a conflict.
You are right, for the for profit businesses like ESPN, but not so true when you are serving on a non-profit board.

Why must we be concerned about conflict of interest?

Board service in the nonprofit sector carries with it important ethical obligations. Nonprofits serve the broad public good, and when board members fail to exercise reasonable care in their oversight of the organization they are not living up to their public trust. In addition, board members have a legal responsibility to assure the prudent management of an organization's resources. In fact, they may be held liable for the organization's actions. A 1974 court decision known as the "Sibley Hospital case" set a precedent by confirming that board members can be held legally liable for conflict of interest because it constitutes a breach of their fiduciary responsibility.
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