Using the Sandusky Scandal as a Case Study: Due Diligence Requirements of Corporate Board Members in Profit and Non-Profit Organizations
Remarks to the Berks County Bench-Bar Conference April 17, 2013, Reading Pennsylvania
Power Point Presentation HERE: BerksPresentation4-2013
Paper HERE: DiligenceObligationsofBoardMembers2013
ABSTRACT:What I would like to focus on today is the role of the University board of trustees—especially the legal framework within which conduct standards are elaborated—in the context of scandals like the Sandusky scandal and its aftermath. In particular I will focus on the obligations of the board of trustees of a university with respect to its diligence and monitoring obligations. After this introduction Part II provides an overview of fiduciary duty applicable to enterprises and focus on non-profit enterprises. Part III then considers the university, focusing on the distinct models that have arisen for university governance. Part IV focuses on the diligence obligations of university trustees and considers recent cases, the legal framework and core issues. The presentation ends with a brief consideration of this framework in the context of the Sandusky scandal and the responses of the Penn State Board of Trustees from a legal perspective.