People Analytics: A Board's Fiduciary Duty?

Directors have a fiduciary duty to stockholders that includes three legal obligations: 1) the duty of care that directors make decisions with due deliberation; 2) the duty of loyalty that directors act in the interest of the corporation (i.e., in the interest of shareholders); and 3) the duty of candor that directors provide shareholders all information that is important to evaluation of the company.1 From a board's perspective, information relevant to the company's evaluation is largely centered on financial considerations. According to The Corporate Leadership Council of the Corporate Executive Board, "research shows...overcoming human capital challenges is more important to integration success than any other aspect of integration. Harvard Business Review Press. 3 Public letter from Human Capital Management Coalition to the U.S. Securities and Exchange Commission (2017).