There is a growing perception that company directors and executives are self-interested actors, using their positions to pursue their own ends rather than what is best for the company and its shareholders.
According to Harvard law professor Robert Clark in an article to be published this year in the Georgia State Law Review, the media frenzy after the collapse of Enron, and a host of other corporate scandals, resulted in a "social facilitation" of the idea that the "bursting of the corporate bubble" was due to bad corporate behaviour, rather than normal economic forces.
The growing distrust of company executives and directors has resulted in a range of new corporate governance laws. The assumption is that the rules are needed to "encourage" those in positions of power to put the interests of the company above their own.
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