Fortis's Ethical Dilemmas

A primary function of the corporate Board is to be aware of and support the overall strategic vision of an organisation, protecting both its long term future and the interests of the organisation’s various stakeholders by monitoring the performance of the management team.
As noted in the readings, Fortis was a leading exponent of principles of Corporate Social responsibility, with an impressive resume of evidence to support this view. However as the crisis and its aftermath highlights, realising a successful marriage between words and deeds, as regards organisational ethics, remains a challenge. It is interesting in this context to note the reference in the paper to the Fortis principles and the explicit reference to the importance of shareholder communication in assisting in making informed decisions. I shall discuss this point further within this paper in the context of one of the major ethical failings of the Fortis board.
Fortis’s historic advocacy of corporate social responsibility had garnered the organisation a large amount of goodwill and trust, both within the industry but most importantly with its own shareholders. It had also, I believe, assisted in the development of a strong partnership between the board and the management of the organisation. This is

However, the primary measure is profitability and return on investment for shareholders. Continuing growth and expansion combine to achieve this goal. Mergers and acquisitions are one attractive lever that can be employed to achieve this goal and thus will always be an appealing proposition for the management of a company. The prestige that can attach itself to those who successfully execute such deals is an added incentive. As a result, the appeal of the ABN AMRO opportunity to the Fortis management can be clearly understood. However, the timing, with the financial crisis clouds forming in the distance could not have been more