Six Items for the Top of Every Board’s Agenda
The role of the board of directors has come under scrutiny in recent years, particularly since the onset of the global financial crisis. While some experts are calling for tougher regulations on boards and a larger role for shareholders in key strategic decision-making, others advocate for more professional board directors.
However, as the dean of IESE, Jordi Canals, asserts in his article "Six Items for the Top of Every Board’s Agenda," available in the most recent issue of IESE Insight magazine, what is truly essential for boards is "to have a crystal-clear idea of how the firm can create sustainable value over the long-term."
This means getting back to basics and remembering that corporate success cannot be separated from the people who comprise a company and the relationships they build internally and with external stakeholders.
Canals lists six key priorities that should be central to any board of directors wishing to develop a positive and lasting business model, while avoiding the erosion of trust that plagues many modern companies.
Canals stresses that "corporate governance and management are social functions that can only be developed in the long-term."
Underscoring the idea that firms are key institutions in modern society, he concludes that the governance of the board of directors is "critical for the companies they lead and the well-being of societies at large."
Members of the Alumni Association and subscribers to IESE Insight– a quarterly research-based magazine, published in separate English and Spanish editions –can read the full article and other premium materials on corporate governance using their membership credentials.