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The Wisdom Of Crowds? Groupthink And Nonprofit Governance, Melanie B. Leslie
The Wisdom Of Crowds? Groupthink And Nonprofit Governance, Melanie B. Leslie
Faculty Articles
Scandals involving nonprofit boards and conflicts of interest continue to receive considerable public attention. Earlier this year, for example, musician Wyclef Jean's Yele Haiti charity became the target of intense criticism after the charity disclosed that it had regularly transacted business with Jean and entities controlled by Jean and other directors. Although scandals caused by self-dealing undermine public confidence in the charitable sector, they continue to erupt. Why do charitable boards sanction transactions with insiders?
This Article argues that much of the blame lies with the law itself. Because fiduciary duty law is currently structured as a set of fuzzy …