Board of Directors
Proving it's easier to announce an action plan than implement one, parts of the B.C. health ministry's 2011 plan "to strengthen physician hiring and oversight and enhance public confidence" remain bogged down to this day in consultations.
In all of my interviews with directors over the years, when I ask about a director's greatest regret the answer is consistently, "I should have spoken up when I had the chance." Chances are several of your colleagues are thinking the exact same thing.
Two sets of criteria are part of your due diligence when making your decision to join a board of directors -- philosophical and practical -- and you need to assess both carefully before either accepting or passing on the invitation.
2015 is shaping up to be a year where boards, once again, will be under intense pressure and scrutiny to get it right. Here is a list of trends and key issues, along with what boards are or should be doing in response.
In my teaching, research and consulting, I no longer use "NP-58201 Corporate Governance Guidelines," June 17, 2005 ("Guidelines"), that apply to publicly traded companies in Canada, as an example of exemplary corporate governance. Here are the ten deficiencies to the guidelines as I see them.
Not only is the millennial generation changing the meaning of corporate, they are also changing how corporations are run. Increasingly, corporations are changing their mission statements to better reflect the "triple bottom line," which emphasize their corporate social responsibility initiatives as a means to better appeal to the next generation of employees.
1. Active owners focused on performance. Expect pressure by activists and institutions for boards to control under-performing
Strikes, picket lines and other forms of protest that require significant labour resources are ineffective against corporations that can use automation or outsourcing as significant bargaining chips. If this is the case, how are activists meant to effect real change? One way is in the corporate boardroom.
Many directors hang on to directorships for far too long. I counted several directors who have been on corporate boards for 10, 15, 20 and 25 years. Many directors hang on to directorships for far too long. I counted several directors who have been on corporate boards for 10, 15, 20 and 25 years.
I recently served on a governance awards judging panel assembled by the Canadian Society of Corporate Secretaries (CSCS). Winners of the awards were announced at this organization's annual conference in Halifax last month. I participated in a plenary discussion to discuss some of the winning practices.