The Magazine of Corporate Responsibility

Tag Archive for ‘Board of Directors’

Sustainability: Business Strategy Trumps Reputation

Sustainability may be a massive and vitally important global movement, says columnist Gael O’Brien, but it often suffers from its own ambiguity. “It isn’t surprising that when you ask people what their company is doing in sustainability,” she reports, “the question back is almost always ‘how are you defining it?’”

Large U.S. Company Boards Monitor Corporate Responsibility

Boards of directors of a majority of large U.S. corporations now have committees charged with oversight of environmental and social issues, but that oversight is often not integrated into the companies’ strategic planning and operations, according to a new research study. The study also found that boards at smaller companies are far less likely to have committees charged with oversight of corporate responsibility issues.

The Ethics of Emotional Intelligence

Recent leadership failures in high profile companies draw attention to the reality that achieving goals – performance – is only part of the formula for success. Another critical piece is the way leaders do it which impacts others – relationships. Columnist Gael O’Brien says leaders who are low in self-awareness, self-regulation, motivation, empathy and social skills lack something called “emotional intelligence.”

Survey: Companies Worry More About Reputational Risk

Perhaps not surprisingly, heightened concern over risk to corporate reputation is “noticeably” affecting how senior management and boards are doing business, according to a new survey of corporate executives. The survey found the timeliness and quality of information shared with boards is improving while more time is being spent on risk management by directors and executives.

U.K. Institutional Investors Urged to Increase Engagement with Management and Boards

Institutional investors and pension fund managers in the United Kingdom should do more to monitor and engage with the companies in which they invest – or else explain why they have not done so, according to provisions of a new voluntary code issued by the U.K.’s Financial Reporting Council.

Survey: Companies Lack Basic Sustainability Programs

A Conference Board survey finds that even though corporations lack the structural framework to enable proper director oversight of sustainability programs, they rarely consult outside expertise. At 89 percent of the companies surveyed, directors continue to rely on reports by senior executives for information on social and environmental initiatives.

Politicizing the Board: Directors Face Powerful Pressures

Serving as a corporate board director will soon become more similar to serving as a county commissioner or city assemblyman than serving on a traditional for-profit corporate board, and as a result some directors may choose not to serve, according to a leading U.S. corporate governance expert.

The “Dark Side” of Independent Board Members

Independent directors have strong incentives to quit a company’s board precisely when they are most needed, creating an economically significant “dark side” affecting future performance, according to an academic study. The study found that in the wake of surprise outside director departures firms have worse stock and accounting performance as well as a greater likelihood of earnings restatements and shareholder lawsuits.

Senate Bill Changes Rules for Boards, Executive Pay

The bill, which passed the Senate by a vote of 59-39, requires directors to win by majority vote in uncontested elections, gives the SEC authority to grant shareholders proxy access to nominate directors and gives shareholders the right to a nonbinding vote on executive pay. The measure must be reconciled with a House bill.

Beauty and the CEO: Looks Matter (Seriously)

There is a “significant relationship” between an executive’s facial traits and the chances that he or she will rise to the job of chief executive, according to a new academic paper. The study found that CEOs who appear more competent-looking – even though they may not be – also tend to get paid more.