|
|
Article: The nature of fiduciary duty: our current notions of how to inhibit abuses of power grew out of ancient Greek logic. (Economic Literacy).
- Article from:
- On Wall Street
- Article date:
- December 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The financial scandals and "perp walks" of 2002 illustrate the downside of the economic and business cycle. As excesses unwind and economic losses mount, disgruntled investors and shareholders are demanding their pound of flesh. The dishonesty, incompetence and bad business decisions that cannot be papered over eventually surface to invite scrutiny, resurrecting age-old debates as to corporate governance, conflicts of interest and fiduciary responsibility.
Concepts of fiduciary duty have their roots in a system of ancient Greek logic that became known as the natural law. Codified by the Greeks, Romans and English, the main point of natural law is to inhibit the ...