What Are the Trade Offs Involved in Diversity of Groups

question 41

Essay

What are the trade offs involved in diversity of groups?

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Definitions:

Corporate Democracy

The system or practices within a corporation that allow for the participation and voting rights of shareholders in company decision-making processes.

Business Judgment Rule

A legal principle that protects the decisions of corporate directors and officers, made in good faith and with reasonable diligence, from being second-guessed by courts.

Fairness Rule

The rule that requires managers to be fair to the corporation when they personally benefit from their business decisions.

Corporate Opportunity Rule

A legal doctrine preventing directors and officers of a corporation from taking a business opportunity for themselves without offering it to the corporation first.