Corporations carry a “corporate veil” that protects both officers and directors from personal liability in company affairs. Nevertheless, this doesn't give officers carte blanche to act as they please. They have fiduciary duties to the corporation, meaning that they must act in good faith and preserve the company's best interests. Officers and directors also have a duty of care to act with a minimum standard of competence. If company audits show that a business failed to meet its legal responsibilities, officers will be expected to demonstrate to audit committees that they conducted appropriate due diligence in carrying out their day-to-day operations. Documenting that they implemented and followed compliance requirements will help to protect them personally in those cases.Failing to demonstrate due diligence, or failing to act in the company's best interests, could enable other stakeholders, such as shareholders, to hold a person acting as an officer liable for corporate transgressions under the law.