The special responsibility of the Board of Directors (BOD) is an issue in many of the recent corporate ethical failures. Which of the following statements is true regarding the BOD?
A. The Board of Directors sits at the bottom of the company s governing structure.
B. The Board s paramount duty is to safeguard the interests of the shareholders.
C. Directors must comply primarily with federal laws of corporate governance, since the federal government provides the corporate charter.
D. The Enron Board of Directors could justify their actions primarily in terms of loyalty and obedience, when they allowed aggressive reporting practices such as special purpose entities or exceptions to GAAP.