Corporate governance scandals across the globe have led many to ask, “Where were the directors?” The usual response to corporate governance failure is increased regulation. Governments typically resort to tightening regulations around director independence and codes of ethics. But what of the role of the personal ethics of directors? Our study has found that directors’ personal moral values are a powerful driver in their decision-making because their moral values are fundamental to directors’ identity. Performance appraisals and director selection processes could make a more effective contribution to best-practice governance by indicating that "proven moral integrity" is the most important measure of success. Personal values