Corporate governance and the proactive board
When should boards take a more proactive approach to governance and strategic decision-making? Research shows that non-executives needn’t wait for a crisis to intervene.
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Boards are supposed to provide governance and oversight of strategy and activities pursued by senior management. But the approach they take to fulfilling this role can vary considerably.
Often, mindful of an expectation that board members should behave in an “engaged but non-executive” manner, boards tend towards the passive monitoring of management decisions.
However, well-publicised corporate scandals, such as the VW emissions debacle and recurring failures in financial services, suggest that there is work to be done to improve governance and oversight systems. Perhaps a more proactive, interventionist approach is need
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