2009 was the year that painfully reminded us about the importance of good corporate governance – and the dangers of the lack thereof. If companies do not have solid internal structures necessary to operate with fairness, accountability, transparency, and responsibility, they not only can’t ensure the sustainability of their own performance, but also endanger the economy as a whole. The global financial crisis has shown that much.
The Conference Board Governance Center gathers senior corporate executives from leading world-class companies and influential institutional investors who come together to debate, develop, and disseminate best practices. In this interview with CIPE, Paul DeNicola, The Center’s Director, talks about the significance of corporate governance and what needs to be done to improve it globally. He says, “Companies need to examine their incentive structures to determine whether they assist or impede ethical decision-making on the part of senior managers. If a company is going to seek to attract capital, it needs to be aware of the world’s expectations with regard to its behavior.”
Article at a Glance
- Despite fears that it would, the global financial crisis has not led to significant backsliding in corporate governance reforms.
- Risk management has been one of the key governance failures in today’s crisis.
- Sustained, worldwide efforts are needed to maintain the commitment to improve corporate governance.
Published Date: January 05, 2010