Boards need to play a bigger role in helping firms through perfect storms and uncertainty
CEO misbehavior, corporate scandals, lack of leadership diversity, activist shareholders. These are all flashpoints that clearly indicate how difficult it can be to create a culture of strong governance in a firm. Building one that lasts is even tougher.
Incidents ranging from fraudulent emissions testing at Volkswagen, unauthorized accounts at Wells Fargo & Co., alleged harassment of women by Fox News executives or the complaints over Silicon Valley’s “bro” culture have turned the spotlight inward, on the board and its accountability. Boards are no longer immune to the negligent or illegal actions of firms or their senior employees.