Professor Jeffrey Sonnenfeld explains the failure of corporate governance at Facebook revealed by the Cambridge Analytica breach. We concur, and we call on the board to establish a committee to investigate further and report to Facebook users and investors about the steps they are taking to prevent further breaches.
The leadership of Facebook is failing to face facts, preferring to live in a world of fiction. Well, at least not facing certain facts. Given the public outrage over Facebook’s reckless handling of user private data, inadvertent complicity with electronic fraud and resulting plummeting stock, Mark Zuckerberg did appreciate the reality that it was time to sell Facebook. He sold well over $100 million in stock last month and Recode is reporting an expected sale of another $13 billion of Facebook stock based on Zuckerberg’s plan to sell 35 to 75 million shares between last September and next year. But he missed five key realities having to do with 1) the underlying Facebook misconduct, 2) the leadership’s efforts to deny and conceal the business model problems, 3) the inadequate personal model set by its top leaders, 4) the governance problem having to do with his unchecked control of the CEO, and 5) the apparent inadvertent complicity of this seemingly disengaged board.