Monday, July 18, 2005
Corporate governance: the new strategic imperative
Nearly a year after the Enron revelations first surfaced, corporate governance dominates the political and business agenda. After a slew of scandals, most of them centred in the US, politicians and regulators, executives and shareholders are all preaching the governance gospel.
But has the pendulum swung too far? This white paper from the Economist Intelligence Unit reveals concern among executives that hasty regulation and overly strict internal procedures may impair their ability to run their business effectively. CEOs have to bear in mind the potential trade-off between polishing the corporate reputation and delivering growth—for all the headlines on corporate responsibility, are investors prepared consistently to sacrifice earnings for the sake of ethics?
See full Report, in pdf format.