Conference Review
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Conference Review Bernard Taylor* and Joseph Tse T he International Conference on Corporate Governance and Direction is an annual forum for the discussion of best practice in board effectiveness. The theme for 2000 was ‘‘Re-designing Board Structures and Relationships to Compete in Fast-Moving Global Markets’’. The key issues facing boards at the start of the twenty first century were identified as: (i) the coming crisis in the boardroom (ii) the growing power of institutional in- vestors (iii) the new social charter and the trend towards increased regulation (iv) the growth of reputation and relation- ship management (v) the globalisation of boards and corporate governance systems (vi) the re-design of board structures and governance systems within companies Debates on corporate governance all too often focus on its pathology – fraud, corruption in high places, the greed and irresponsibility of executives and speculators, cronyism and cartels, the need for greater transparency in reporting, tighter controls and closer monitor- ing by boards and regulators. At the conference we wished to evaluate corporate governance as a framework and a process for creating value and building cor- porate reputation – not simply through public relations and ‘‘spin’’, but by enabling com- panies to develop strong and enduring relationships with their shareholders, stake- holders, governments and communities. As corporations merge, expand internation- ally and adopt new communications technol- ogies, company organisation structures are becoming leaner and more flexible, and the processes and structures of Corporate Govern- ance will also need to change. At present the main emphasis in Corporate Governance is to impose tighter regulations, more detailed codes of practice and more comprehensive legislation. Decision–making is highly centralised in main boards, with subsidiary boards frequently operating as management committees. All too often the directors are drawn from a business elite which does not reflect the diversity of modern business and society in terms of age, gender or international experience. A fundamental challenge for directors, executives and policy makers is to determine how corporate governance structures and systems should be adapted to enable modern corporations to thrive and grow and at the same time keep in step with the changes which are taking place in society and its institutions: shareholders and stock ex- changes, governments and regulators, trade unions and professional institutes, partner- ships and alliances, consumer associations and pressure groups working through the media and the internet. Bernard Taylor is Emeritus Professor of Busi- ness Policy at Henley Management College and Executive Director of its Centre for Board Effectiveness. He is an External Examiner for the Diploma in Company Direction. He is a fellow of the Institute of Directors and the Chartered Institute of Bankers, author of 23 books on corporate strategy and board leadership and a consultant to business and government internationally. His latest book, (with Philip Stiles) Boards at Work was pub- lished by Oxford University Press in April 2000. From 1968–1998 he was Editor of Long Range Planning. Before joining Henley Man- agement College he held responsible posi- tions with Proctor & Gamble, Rank Xerox, the Chartered Institute of Marketing and the University of Bradford Management Centre. Joseph Tse is a Research Fellow of the Centre for Board Effectiveness at Henley Management College where he is undertaking doctoral research into Client-Consultant Relationships in Management Consultancy. Before joining the College he was a management consultant with Andersen Consulting. * Address for correspondence: Bernard Taylor, Henley Man- agement College, Greenlands, Henley on Thames, RG9 3AU. Tel: 01491 418807; Fax: 01491 591574; Email: jillfo@henley mc.ac.uk CONFERENCE REVIEW 141 # Blackwell Publishers Ltd 2001. 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main Street, Malden, MA 02148, USA. Volume 9 Number 3 July 2001
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Transcript of Conference Review
Conference Review
Bernard Taylor* and Joseph Tse
T he International Conference on CorporateGovernance and Direction is an annual
forum for the discussion of best practice inboard effectiveness. The theme for 2000 was``Re-designing Board Structures and Relationshipsto Compete in Fast-Moving Global Markets''. Thekey issues facing boards at the start of thetwenty first century were identified as:
(i) the coming crisis in the boardroom(ii) the growing power of institutional in-
vestors(iii) the new social charter and the trend
towards increased regulation(iv) the growth of reputation and relation-
ship management(v) the globalisation of boards and corporate
governance systems(vi) the re-design of board structures and
governance systems within companies
Debates on corporate governance all too oftenfocus on its pathology ± fraud, corruptionin high places, the greed and irresponsibilityof executives and speculators, cronyism andcartels, the need for greater transparency inreporting, tighter controls and closer monitor-ing by boards and regulators.
At the conference we wished to evaluatecorporate governance as a framework and aprocess for creating value and building cor-porate reputation ± not simply through publicrelations and ``spin'', but by enabling com-panies to develop strong and enduringrelationships with their shareholders, stake-holders, governments and communities.
As corporations merge, expand internation-ally and adopt new communications technol-ogies, company organisation structures arebecoming leaner and more flexible, and theprocesses and structures of Corporate Govern-ance will also need to change.
At present the main emphasis in CorporateGovernance is to impose tighter regulations,more detailed codes of practice and morecomprehensive legislation. Decision±makingis highly centralised in main boards, with
subsidiary boards frequently operating asmanagement committees. All too often thedirectors are drawn from a business elitewhich does not reflect the diversity of modernbusiness and society in terms of age, genderor international experience.
A fundamental challenge for directors,executives and policy makers is to determinehow corporate governance structures andsystems should be adapted to enable moderncorporations to thrive and grow and at thesame time keep in step with the changeswhich are taking place in society and itsinstitutions: shareholders and stock ex-changes, governments and regulators, tradeunions and professional institutes, partner-ships and alliances, consumer associationsand pressure groups working through themedia and the internet.
Bernard Taylor is Emeritus Professor of Busi-ness Policy at Henley Management Collegeand Executive Director of its Centre for BoardEffectiveness. He is an External Examiner forthe Diploma in Company Direction. He is afellow of the Institute of Directors and theChartered Institute of Bankers, author of23 books on corporate strategy and boardleadership and a consultant to business andgovernment internationally. His latest book,(with Philip Stiles) Boards at Work was pub-lished by Oxford University Press in April2000. From 1968±1998 he was Editor of LongRange Planning. Before joining Henley Man-agement College he held responsible posi-tions with Proctor & Gamble, Rank Xerox, theChartered Institute of Marketing and theUniversity of Bradford Management Centre.
Joseph Tse is a Research Fellow of the Centrefor Board Effectiveness at Henley ManagementCollege where he is undertaking doctoralresearch into Client-Consultant Relationshipsin Management Consultancy. Before joiningthe College he was a management consultantwith Andersen Consulting.
* Address for correspondence:Bernard Taylor, Henley Man-agement College, Greenlands,Henley on Thames, RG9 3AU.Tel: 01491 418807; Fax: 01491591574; Email: [email protected]
CONFERENCE REVIEW 141
# Blackwell Publishers Ltd 2001. 108 Cowley Road, Oxford OX4 1JF, UKand 350 Main Street, Malden, MA 02148, USA. Volume 9 Number 3 July 2001
