How Boards Can Reduce Corporate Misbehaviour
As the ultimate guardians of the firm’s financial, human, and reputational capital, corporate boards need to set their bar higher, and replace reactive approaches to misbehavior with a proactive approach to winning with integrity. Instead of assuming everything is fine unless they hear otherwise, directors need to be more probing say Constance E. Bagley, Bruno Covam and Lee D. Augsburger in this article for Harvard Business Review.
Based on decades of experience working with companies in multiple industries and studying hundreds of compliance failures, they’ve developed a ten-step program to help boards reduce the risks of illegal behavior, reinforce ethical conduct as a core value, and enhance the company’s reputation—in the eyes of regulators and stakeholders—as a good corporate citizen. You can find the ten steps here.
Directors need to set the corporate tone and model integrity, and to do this they need to equip themselves with a strong ethical framework. Having thought through what they stand for, and what they will allow, will stand them in good stead when they need to respond to the challenges that face all companies and leaders at some point.
Harvard Buisness Review, Constance E. Bagley, Bruno Cova, and Lee D. Augsburger, December 21, 2017. Read the full article here.
Cranlana Centre for Ethical Leadership’s programs include the 2 day Executive Ethics, 6 day Executive Colloquium and year-long Vincent Fairfax Fellowship. We also deliver online and tailored corporate programs. Find the right program for you. They are all held under the Chatham House Rule to encourage genuine and open debate, and allow participants to candidly discuss sometimes sensitive issues in private while allowing the topic and nature of the debate to be made public, and contribute to a broader conversation. The alumni program offers ongoing leadership development support and a lifelong connection with Cranlana.