Article: Does Insider Knowledge Help or Hurt A Board?
Do boards consciously attract board members or executives who can bring information from other entities? Do they want them to provide the board with inside knowledge they can use to develop their own strategies?
This practice raises at least three concerns:
- Gathering intelligence to achieve desired outcomes
- The need to compete is stronger than the need to be trusted
- The need to know is stronger than the need to trust one’s own strategy.
Three potential results of this practice are discussed. The first is the notion that the media can prolong the issue by focusing on it from multiple angles. The second relates to the fact that there can be a material result for the board. The final result discussed is the impact of the loss of trust.