Boards Acting Wisely: Be Different, Beyond Compliance

Governance is more than compliance; it refects a culture or attitude that embraces consistency, responsibility, accountability, fairness, transparency and respect for shareholders’ rights and stakeholders’ concerns. Governance and reputation management are correlated. The more a board is able to fulfill its fiduciary duties of loyalties and care, the less reputational risk and possibly the higher the reputation of the organization. Good governance provides the check and balances to control risks and to prepare organizations to embrace opportunities. A board promotes and communicates the central idea of why the company exists and how the company will collaborate and compete ethically and win. Boards have evolved from rubber-stamping to monitoring and control, though some excellent boards are now taking a more active leading and coaching role.