Читать книгу Corporate Governance - Quantity Versus Quality - Middle Eastern Perspective - Saleh Hussain - Страница 24

The duty of diligence makes the director's knowledge of the industry in which the company is operating a prerequisite for his selection to the board. The director must use such industry knowledge to pay attention to the details of all proposals referred to the board for consideration. Part of the details that need to be considered to arrive at board resolutions are the company's relationships with its stakeholders. Those resolutions might be received by shareholders and stakeholders. The other dimension that must be looked at by the director in a diligent manner is the impact of the company's business and decisions on others - what kind of precautions he needs to consider to mitigate any negative impact on others. 'Others' here include customers, service users, competitors and the society within which the company operates. The social responsibility of the company's business must be respected and protected.