A Tale of Two Boards

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Recommended: Business ethical issues and dilemmas

Introduction
In the case study of A Tale of Two Boards there are numerous ethical issues outlined within Disney and Boeing which include conflicts of interest, agency theory, integrity, excessive compensation plans, bribing, personal affairs and even utilizing proprietary information. These types of ethics violations show a lack of corporate governance and limited accountability and responsibility by the Board of Directors to commit to conducting business in an ethical manner.
Disney
In regards to Disney’s CEO Michael Eisner showcased numerous areas of conflicts of interest and even agency problems for creating a weak, captive board of directors. Many of the board of directors had personal ties to him, whether it was through his childs school, his personal architect, or personal attorney, they were unwilling to scrutinize or even question his business decisions, some of which were major errors and caused Disney poor performance. These directors personally gained financial rewards and favors due to their personal relationship with Eisner all of which were a blatant conflict of inte...

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