Monday, March 28, 2005

Chicago Tribune | Boards face a conflict of giving

Chicago Tribune | Boards face a conflict of giving: "Boards face a conflict of giving
Gifts from corporate foundations to entities with ties to directors raise concerns about loss of independence

By Andrew Countryman
Tribune staff reporter
Published March 27, 2005

The nation's largest corporate foundations in recent years have poured money into organizations affiliated with their companies' board members, which governance experts said can compromise director independence.

A Tribune study of the most recent annual reports from the 20 largest U.S. corporate foundations revealed they gave nearly $25 million to non-profit groups for which one or more directors was an employee, trustee or held another leadership position. In some cases, 10 percent or more of all donations went to these organizations."

No comments: