In an age of transparency and globalization, U.S. companies should beware of disclosures which—once exposed—raise several red flags. But in other regions, conflicts of interest aren’t treated with the same urgency. Doing business with family or within close-knit groups, rather than being eyed with skepticism, is often seen as a trustworthy relationship and therefore unworthy of investigation or enforcement. But as transparency evolves as a global concept, more conflict-of-interest issues are being raised, and boards must ready themselves for the challenges to come.
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