Do the legal rules (i.e., fiduciary duties of care and loyalty, the business judgment rule, safe...

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Do the legal rules (i.e., fiduciary duties of care and loyalty, the business judgment rule, safe harbors, etc.) and the SEC self-regulatory oversight philosophy, both of which define corporate self-regulation in a free enterprise market economy, provide enough protection to stakeholders to prevent corporate misconduct? Should there be more regulation or less regulation of business?  EXPLAIN your answer.

David · Accepted Answer

The fiduciary duties are the fundamental governance duties which should be followed by all 
the board members. The board members can be held liable if they don’t follow these 
regulations. These duties are duty of care, loyalty and obedience. This means that the board 
of directors should take care when they make decisions for the organization. They have to 
keep the best interests in mind while making decisions and have to be consistent with the 
vision and mission statement of the organization. The safe harbors include the various 
payments and regulations which say that the federal anti kickback statute are not actually the 
offenses under the statute. The SEC self regulatory oversight philosophy and PCAOB’s 
responsibility is to register public accounting firms, auditing, control, ethics,

Do the legal rules (i.e., fiduciary duties of care and loyalty, the business judgment rule, safe harbors, etc.) and the SEC self-regulatory oversight philosophy, both of which define corporate...

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