• Find an article that relates to a business event that happened as a result of failed governance
• Provide a URL to the article
• Provide a summary of the article
• Answer the question: How could proper governance have prevented this event?
Article URL: https://www.nytimes.com/news-event/elizabeth-holmes-theranos-trial: https://www.nytimes.com/news-event/elizabeth-holmes-theranos-trial
Summary:
Theranos, a once-promising blood-testing startup founded by Elizabeth Holmes, promised to revolutionize healthcare with its Edison blood-testing device, capable of running a multitude of tests from a single drop of blood. However, the company’s claims turned out to be false, and the device never functioned as promised. The article details how Theranos’ downfall stemmed from a series of failures in governance, including:
These governance failures ultimately led to Theranos’ collapse, causing significant financial losses to investors and damage to its employees and the healthcare industry.
How Proper Governance Could Have Prevented the Event:
By implementing these governance measures, Theranos’ downfall could have been avoided, protecting investors, employees, and the public from the consequences of failed leadership and deception.
This is just one example, but it highlights the crucial role of effective governance in preventing business failures and protecting stakeholders. By learning from Theranos’ mistakes, other organizations can strengthen their governance practices and ensure long-term success.