What is Corporate Governance?

• Corporate governance is a system that guides the conduct of the

people within an organization, as well as the direction of the
organization itself.

• Corporate governance is altogether different from the daily

operational decisions and activities that are executed by the
management of an organization. Corporate governance is the domain
of the Board of Directors, as opposed to its management team such
as the CEO.
Corporate Governance Deployment
• Enterprise Risk Management – This includes identifying and mitigating
strategic, operational, reputational, and even financial risks within an
organization.
• Strategic Planning – This is all about identifying and capturing opportunities
today in order to position for enduring competitive advantages and future
value.
• Accounting & Disclosure – The corporate governance function must support
financial recordkeeping, as well as approve public stakeholder reporting
• Talent Management – This requires that leaders understand how to attract,
retain, and improve human resources within the organization. This area is
often referred to as Human Capital Management.
Current Trends & Corporate Governance
Pressures
• The “Great Resignation”
The so-called “Great Resignation” has created an environment where
the very nature of work (as we once knew it) has changed. Firms must
consider remote and hybrid working arrangements when planning to
hire. While this presents challenges, it has also opened the door to a
much broader talent pool since companies are no longer required to
hire people that live within commuting distance of the nearest office.
• Climate change
Leadership at many organizations is realizing that climate change presents
more than just environmental risks – it can present existential risks to business
operations. With so many organizations making pledges to meet “Net Zero” or
even carbon neutral emissions targets, having BOD representation with some
ESG experience has become paramount in order to navigate the ESG disclosure
landscape and to avoid the perception of greenwashing.

• Geopolitical and Economic Uncertainty

Russia’s invasion of Ukraine in 2022, coupled with strained relations between
two of the world’s economic superpowers (the US and China), are a few of
many factors that have converged to create stress in supply chains, as well as
subsequent economic uncertainty on a global scale. A strong leadership team
and effective corporate governance function must identify and seize upon
opportunities while simultaneously identifying and mitigating risks accordingly.
• Technology & Data
In an increasingly digital world (and economy), technological advancements have
changed the landscape of virtually every business. Employees, customers, and
other stakeholders are increasingly concerned about privacy; therefore, it’s
incumbent upon organizations to take these issues seriously. Secure warehousing
of sensitive information, deployment of communication tools, and general data
protection and integrity are all major topics of discussion in boardrooms around
the world.
• Hybrid and virtual board and shareholder meetings
The online and hybrid models do not need to be limited to the office. Going virtual
or hybrid in the boardroom allows you to save money on travel and related
expenses, increases attendance and allows your board to spread the net wider to
find the best new talent to join your team. Board meetings with an online element
help you cut the use of fossil fuels and allow for more corporate board diversity, as
there are fewer barriers to attendance.