What is Shareholder Wealth Maximization

This chapter addresses the ethical values and responsibilities of corporate directors in the unfolding digital era. Explanation for directors of private or public companies in the digital era involves three principal dimensions. The first concerns the ethical values and responsibilities of any director defined independently of the company or industry or era. The second concerns the additional ethical responsibilities of a director in the digital era, which imposes further conditions on directors. These conditions are heightened for directors of high technology, digital era-oriented businesses. The third dimension concerns whether ethical values and responsibilities of directors vary across countries and legal systems. This dimension separates into legal standards for directors and cultural variations in attitudes and behaviors of directors and managers. The chapter offers real company illustrations for these three dimensions. The chapter recommends four solutions: better and better prepared directors, sounder regulation, and a more unified theory of ethics and responsibility.