“Drawing lessons from the financial crisis, the G30 calls on boards of directors of financial institutions to do far more to strengthen governance. The report stresses that values influence the behavior of those with governance responsibilities and the key to reform is to promote changes in the ways in which these individuals think about their responsibilities.”
Tag Archives: organization
The Board Members and their mission in the organization
By Adina Genn from the netplace.com website
The article deals with the role of administrator :
Foster the role in board members and to encourage the creation within the (supervisory) board of committees responsible respectively for remuneration.
To resume, the author derives four core principles of governance system in order to contribute funds like “ Help identify and contact contributors” or “Offer knowledge and guidance based on their background in the organization or in the for-profit business community.
Of course, these roles may be different according to company size, sector …
For the full review check out this link : The Board Members
A Practical Guide to CEO Succession Planning
By Clarke Murphy, Managing Director at Russell Reynolds Associates
In Touch with the Board – Russell Reynolds Associates’ in touch with the Board series addresses best practices in board composition, assessment, succession planning and other critical corporate governance issues. In this issue, Clarke Murphy and the CEO/Board Services Practice discuss the specific elements and timeline of a successful CEO succession plan, as well as the steps necessary to ensure a smooth transition.
The transition from one CEO to another is a critical moment in a company’s history. A smooth transition is essential to maintain the confidence of investors, business partners, customers and employees and provides the incoming CEO with a solid platform from which to move the company forward. A properly designed and executed succession plan is vital for any successful transition.
CEO vacancies can be planned or unplanned. In either scenario, by the time a succession plan is needed, it is far too late to start building one, and it is incumbent upon the board to make succession planning a priority, even in the face of more immediate and tangible issues. In addition to mitigating risk, succession planning brings with it several beneficial byproducts:
• It provides a framework that drives senior executive development, aligning leadership at the top of the enterprise with the strategic needs of the firm.
• It gives the CEO, through an ongoing analysis of the job requirements, the opportunity to adjust his/her role in light of changing business conditions and strategic imperatives.
• It strengthens the relationship and information flow between the board and senior management through the regular contact that is part of the board’s review of candidates.
Russell Reynolds Associates regularly advises boards and CEOs on chief executive officer succession planning, and, from this experience, we have developed the following practical guide.
This is an extract from the article Busmanagement.com
Staying ethical in a competitive world
“Ethisphere Institute, a New York City think tank, has unveiled its sixth annual list of the
(WME).
The list identifies organizations with fair business practices and standards compared with their industry peers. Achieving this level of recognition can be a challenge for many companies because finding the right leadership to guide an organization through difficult economic times, while also meeting expectations for ethical conduct, is not always easy. This year, nearly 5,000 companies were nominated but only 145 made it onto the list. According to Ethisphere, the 2012 list includes representatives of more than three dozen industries, from aerospace to wind power, with 43 of the winners headquartered outside the US.
Ethisphere methodology includes measuring the nominated company’s governance structure against checklists from organizations like GovernanceMetrics International. If a company fails to have a ‘good’ rating due to bribery allegations, corporate citizenship, regulatory and ethical issues, it is automatically tossed out of the list.This year’s first-time recipients included Hasbro, Realogy, Petco, Britain’s Ethical Fruit Co, Thrivent Financial for Lutherans and Henry Schein, along with 31 others. Some 18 companies were removed from last year’s list this time due to ethical violations or lack of social responsibility initiatives.The economic climate over the past several years has made it particularly difficult for top leaders and executives to land a place on the Ethisphere list. When the bottom line is under stress, other objectives can become secondary, or be completely ignored. Just look at the number of now-defunct firms and fraudulent activities the SEC and Department of Justice have cracked down on in the past year. For a firm to make it onto the WME list is, therefore, undoubtedly both an honor and an achievement.Marriott International is one of the few companies to secure a hard-earned spot on the ethical companies list not once but five times in the past six years. So how does Marriott maintain its sharp focus on ethical practices in a highly competitive world?
Well, ethics is correlated with leadership and it all starts with the tone at the top. The company’s executive leadership in its Bethesda headquarters and in regional offices around the globe has set an example admired throughout the industry. In Marriott’s law department, general counsel and executive vice president Ed Ryan and his team have taken to heart the principle established by the hotel operator’s CEO and chairman John Willard Marriott (JW) and COO Arne Sorenson, as they have helped guide the company through some of its toughest times.”
This is an extract from Corporate Secretary, to read more: www.corporatesecretary.com
