On October 8, 2016, just three days after the New York Times published a report detailing extensive allegations of abuse and harassment by Harvey Weinstein, he was fired from board of directors, although he still retained ownership of the company. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay After sexual misconduct emerged from the dark depths, many other irregularities emerged, many of which had been going on for decades. The Weinstein brothers, Harvey and Bill, created Miramax in 1979 and began producing many films that performed well at the box office. In the 1990s, Disney took notice of their success and acquired the company in 1993. Disney decided to keep both brothers on board as they had an eye for talent and success and were given virtual autonomy in an effort to preserve Miramax's creative culture. This laissez-faire approach inadvertently created opportunities for misconduct that Harvey exploited. Laissez-faire is a policy that allows things to take their own course, without interfering. However, it didn't take long for the relationship to sour. The Weinsteins spent exuberant sums of money, took on films that made Disney cringe, and negotiated deals without Disney's knowledge or approval. Yet Disney continued to fund their businesses with millions of dollars and tolerate their behavior as long as they continued to produce hits. Eventually the gap between Disney and Weinstein widened until, in 2005, the parties split and went their separate ways after some legal issues. battles the year before. Disney retained Miramax and the Weinsteins created The Weinstein Company (TWC). By the time TWC was founded, there were already dozens of victims of Harvey's sexual abuse. Because of Disney's desire for reputation management, which is the practice of taking care of a company's "image", they allowed its behavior to go undisturbed and ultimately failed in their duty of care, which involves l 'exercise of reasonable diligence by a board member. ensure that the corporate executives with whom he works carry out their management responsibilities and comply with the law in the best interests of the company. Rather than reveal the misconduct on their watch, Disney chose to protect their family image thus allowing Harvey to continue unchecked. During his reign at TWC, Harvey built for himself a powerful network of movers and shakers from the worlds of finance, journalism, and politics. Exploiting these resources to his own advantage, he often promoted his own business or punished rivals. TWC's board of directors, with a total of 9 members, boasted several men described as "Harvey loyalists". None of these “loyalists” remained after the allegations came to light. The mass exodus from the council left him paralysed. Of the original nine, only three remained, including Bob Weinstein and two directors who had long wanted to abandon Harvey. The men who jumped ship failed in their duty of loyalty, which requires loyalty as a board member must give total loyalty when making decisions affecting the organization. This means that conflicts of interest must always be resolved in favor of the company. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay It was revealed that Harvey mistreated and insulted employees, directors, and even his own brother. It also squandered millions of dollars of investors' money. As.