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A study entitled “Wrongdoing by Officers and Directors of Charities,” researched incidents involving criminal and civil wrongdoing by officers and directors of charitable organizations between 1995 and 2002. Of the 152 incidents found through newspaper reports, 104 involved criminal activity and 54 involved breaches of fiduciary duties (6 involved both).
Of the 104 charged with crimes, 11 trustees (directors), 88 presidents (CEOs), and 10 treasurers were prosecuted and convicted. Of this grouping, 74 went to jail and 46 were imposed with restitution penalties of over $30 million collectively. Of the 54 incidents involving breaches of fiduciary duty, 27 trustees, 44 presidents, and 2 treasurers were either removed, forced to resign, punitively fined or forced to pay restitution of over $106 million collectively. The term “Fiduciarity” refers to a broad notion of financial and corporate stewardship. It implies an “obligation to serve the financial interests (and corporate health) of those who have entrusted certain individuals with their well-being.” It comes from the word “Fiduciary,” which comes from the Latin “fiducia,” meaning "trust." A fiduciary is a person who has been entrusted with the power and authority to act for another under circumstances which require total trust, good faith, and honesty. It is from this concept that we derive the term “trustee.” The trustee, or one who has been entrusted, is responsible to ensure the trustworthiness of the organization. His authority is given, not to serve his own interests, or the interests of certain privileged individuals, his role is to preserve the integrity of the organization and guard the interests of those who are relying on him. Richard R. Hammer, in his volume, "Pastor, Church, and Law;" lists eight theories of liability for board members and corporate officers. These reflect the most common incidents of litigation resulting from trustees’ dereliction of duty. To learn more click here Comments are closed.
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It was concerning King Saul that David said, “How the mighty have fallen, and the weapons of war perished.” His was a life that began with great promise and celebration, but ended in miserable failure and humiliation. His life is an example of how the mightiest of leaders fail.
Why do great men and women fall? How do leaders, quick to ascend with such promise of unparalleled success, find themselves awash in disastrous failure and disgrace? More importantly, can the path toward one’s downfall be discerned before it’s too late and be avoided? It is the premise of my newest book, How The Mighty Have Fallen that such a decline can be detected and reversed. The life and leadership career of King Saul, Israel's first king, provides us with a treasury of examples of "what not to do." The below blog post is the first in series of excerpts from the book to examine and avoid Saul's mistakes and find a successful path through leadership. READ AN EXCERPT |
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