Officers and directors of companies are bound by the duties of loyalty and reasonable care in overseeing the operations of their companies. When someone is hired to join a company, they are reasonable for their actions that happen inside and outside of work especially pertaining to the organization. It is imperative for these employees to be loyal to their work and duties to maintain smooth operations and daily activities. Employees follow suite to how management acts and if they are careless and unfaithful other employees will likely be as well.