Key Drivers in Corporate Governance: Moving forward

In their interesting post “Whatever Happened to Values-Based Corporate Governance?” published on NACD directorship, Pat Canavan and Thames Fulton argue that on CG matters, the emphasis on compliance and regulation de-emphasizes the basic building block of good business and good relationships. 

This is in line with ideas exposed in our post “advisory board vs statutory board?” where is explained that too much CG compliance kills Governance which should be dedicated … to value creation and long-term sustainability.

Pat and Thames discuss the evolution of Corporate Governance from Rules-based to Values-based in the last decades, with the results that “Rules trumped Values”. 

“Clearly the time has come to move forward, not only by doing what is required but also by renewing the focus on doing what is right. The path to better governance—and restoring trust in the system—begins with competent, trustworthy leaders who embody good values, serving within organizations that encourage them to exercise those values”

Talent for Equity team

READ MORE on NACD directorship site

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