Worldwide financial scandals, legislative backlash, shareholder revolt: Everyone wants to improve the way corporate boards work. The attention usually focuses on compliance and documentation. The Sarbanes-Oxley and NYSE requirements along with new surveys and checklists offer to help boards by increasing their paperwork. No doubt financial reporting and auditing will be improved. But is that enough?
The bottom-line objectives for good governance are simple. The role of the board is to protect and grow shareholder wealth and ensure ethical and equitable corporate behavior for all stakeholders. The board must trust, but verify, the management team’s stewardship. Boards should reinvent their roles and the protocols under which they operate to be effective in recognizing and acting when necessary. How Corporate Boards (Should) Work examines how.
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