Director’s face the complex and often competing issues of enhancingshareholder value and meeting their social responsibilities. No directorwants a shareholder’s meeting to become a political or social activismnews story. A board may choose to establish and advisory boardcomposed of shareholders with leadership experience on social issues. The executive committee may be charged with assessment duties andreporting back to the board on the company’s social responsibilityperformance.Compliance issues are often difficult enough for a board to establishpolicies and strategies to ensure success. However, many specialinterests groups act as watch dogs - demanding corporate boards toestablish strategies far exceeding regulations such as Sarbanes-Oxley.Corporate ethics should be posted on company websites and includedin the prospectus of a company. This serves to demonstrate thecorporate board’s commitment to transparency in financial matterregarding director’s governance.Corporate ethics are determined by corporate culture and by the ethicsof the directors. Directors have a responsibility to the shareholders forincreasing the value of the company, however occasionally directorsbring into the boardroom agendas of their own. Many directors, justlike other shareholders, have backgrounds as environmentalist, unionleaders, and in government. Corporate ethics usually require directorsto adhere to corporate charters in carrying out their responsibilities asa corporate director. Good governance demands the CEO andChairman of the board to conduct assessments to ensure soundpolicies are being promoted by the board, and not the policies of aspecial interest group.Leadership development and professional governance rules canprovide guidelines for social issues. Rules establishing an advisorycommittee to consider and make recommendations to the board as awhole on all social and environmental issues can decongest the boardmeetings. The CEO and Chairman of the board must conductleadership assessments of all directors to ensure the right mix on theenvironmental committee. The board should also develop and post anenvironmental and social responsibility statement on the company’swebsite and as a part of the company’s annual report.Corporate governance is a balancing act between competing issues. Agovernance structure must satisfy compliance issues, regulatoryissues, financial issues and social, environmental and human rightsissues. Failing to address adequately any one of these issues can havea negative effect on the board’s ultimate financial responsibility toenhancing shareholder value.