Journals 2019
Journal 304
December 2019
‘The consensus around our table was that non-execs have several very important roles to play in this, by: challenging their boards to develop appropriately ambitious CO2 reduction plans; scrutinising the delivery of those plans; using their networks to transfer good practice from one board to another; and communicating with the investor community.’
David Archer and Alex Cameron
‘Overall, the business case for addressing sustainability is compelling – and companies can no longer afford to avoid embedding sustainability goals into their strategic thinking. ESG concerns have reached the boardrooms and are topping agendas. We are seeing this play out across all markets as businesses respond to increasing expectations among customers, shareholders, and civil society.’
Robert King
Journal 303
November 2019
‘This third view involves the development of ethical concerns and attitudes related to the situation, given the legality and the legitimacy of a particular action, but with the understanding that what is considered legal and legitimate can differ in the home and the host country. Let us call this “moral pragmatism".'
Jean-Claude Usunier
‘We have to have both the conviction to stick to our purpose and the antennae and good sense of judgement to know when to adapt it to ensure that we survive, to sustain success or to fulfil our organisation’s and our own potential. To conclude, it’s hard to have a board that is fit for purpose if you don’t know what the purpose is.’
Patrick Dunne
Journal 302
October 2019
‘Co-operatives such as Outlandish show that one can achieve the holy grail of marrying sound structures and processes with good behaviours and values, and thereby achieve good commercial, ethical outcomes for clients.’
Richard Smerdon
‘However, closer study of the firms listed on the BVL suggests that as firms internationalise either for finance or to access markets, good governance is becoming integrated into the business model so that regional firms operating in Peru or large so-called trans-latinas have significantly better compliance.’
John Lawrence
‘We think this bodes very well, not just for the development of good fund governance principles more widely throughout organisations but also for the development of a strong pipeline of future fund board directors for whom transparency, value and governance are firmly entrenched in their day-to-day business practices.’
Shiv Taneja
‘Ultimately, SRD II aims to prevent the mistakes made in the past. Governance and oversight are only possible if the information and data being used to make the judgements is full and accurate and is available at the same level of detail to all players equally. Knowledge therefore is key to ensuring accountability.’
Aniel Mahabier
Journal 300
August 2019
Featured Articles:
- Women’s role in solving the productivity puzzle
- Shareholder ‘activism’
‘Directors must consider which business metrics are most appropriate for identifying high performers and consider whether or not the ability to adhere to a traditional working pattern is the most important criteria at a time when productivity and the ability to innovate and generate results are becoming increasingly important.’
Alison Gill
‘Yet, when we look beyond these snappy headlines, we find not only has the concept of shareholder activism been hi-jacked by a small cadre of extremely wealthy private equity investors with large shareholdings to leverage but, more worryingly, the idea of increased board accountability is often just a polite synonym to describe rampant often wild shorttermism in investment decision making.’
Gerry Brown
Journal 299
July 2019
Featured Articles:
- The governance issues of business groups
- The governance of sustainability
‘In order to tip the balance towards better behaviour on the part of controlling shareholders at the group level, there exist a variety of legal and regulatory regimes that attempt to protect external shareholders from potential conflicts with the motivations driving the owners of the wider group as a whole.’
Yin-Hua Yeh
‘Dependency on short-term actions: the magnitude and nature of the future impacts will be determined by actions taken today, which thus need to follow a credible and forward-looking policy path. This includes actions by governments, central banks and supervisors, financial market participants, firms and households.’
Richard Smerdon
Journal 298
June 2019
Featured Articles:
- Is your board fit for the digital age?
- Corporate governance – a radical rethink
‘For 30 years boards have viewed technology as an operational matter, best delegated. Now, in the digital age, society is different; business is different; risks are different. Does your board have the right conversations – and the right skills?’
Stephen Page
‘So, if we are really honest about it, the regulatory regime has failed, and the time has come to dismantle it and start again. The new start should concentrate on training in behaviours and values, and encouragement by shareholders and employees for companies to design the governance which works for them.’
Richard Smerdon
Journal 297
May 2019
Featured Articles:
- The role of the Senior Independent Director
- 70% of FTSE 350 Chairs under pressure to step down
‘… the SID also needs to be able to act as a lightning rod – picking up signs of emerging conflict or disquiet amongst fellow board members and giving voice to it at an appropriate time (particularly when the Chair is not responding to these tensions) so that issues don’t fester.’
David Archer and Alex Cameron
‘The purpose of a good Chair isn’t to lead thinking for the board, but rather to be an independent facilitator. Someone capable of encouraging people to think around topics and seek knowledge and data to make good decisions, instead of relying on existing beliefs.’
Alison Gill
Journal 296
April 2019
Featured Articles:
- Caveat praesidium – Chair beware
- Climate governance considerations for boards
‘It is easy to see how for many boards having short tenure Chairs may create unintended consequences. Understanding these potential consequences could start influencing the appointment process and potentially lead a nomination committee to disqualify otherwise highly qualified candidates due to restraints on tenure length.’
John Dawson and Michael Henson
‘Climate change poses challenges for boards on many levels. It is a risk that is unique for businesses in its scope and scale, yet due to the complex and diverse nature of the issue, it remains poorly understood by many.’
Margaret-Ann Splawn
‘Instead, the findings show that firm specific factors account for most of the differences. Firms with more cash, higher market-to-book ratio, and more intangible assets demonstrated the greatest cost impact from the conflict of interests.’
Boris Nikolov, Erwan Morellec, and Norman Schürhoff
‘There must be a challenge to the current status quo. Boardrooms have become over-reliant on technical teams for advice and, as a result, restricted in how they can manage cyber risk from a strategic level. If controls are maintained only at operational level with no foundational strategy to maintain them then the overall cyber resilience is likely to be flawed.’
Neil Hare-Brown
Journal 294
February 2019
‘One of the most notable findings in our analysis is how much more willing investors are becoming in opposing board members directly when they consider that there have been corporate governance failings.’
Daniele Vitale
‘The value of a well-designed succession plan is indisputable: firms which fail to provide a clear framework for succession after the passing of a founder often experience severe difficulties. However, merely having the vision to design a succession plan does not guarantee success. The further dimension to take into account is human nature.’
Yin-Hua Yeh
Journal 293
January 2019
‘Others emphasised the benefit of linking climate change reporting to a board’s normal financial reporting cycle and saw the principles issued by TCFD (Task Force for Climaterelated Financial Disclosures) as a useful standard, requiring companies to engage with stakeholders and explain how they were contributing to reducing climate risks.’
Alex Cameron and David Archer
‘A number of our interviewees … suggested that kind leadership behaviours had a strong positive impact on organisational well-being and performance. For employees, the result is greater contentment, higher motivation, higher engagement and participation. Teams and management, they found, were more creative and innovative, with positive relationships more prevalent.’
Gay Haskins and Alison Gill
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