The role of corporate governance has never been a more vital control in securely delivering on the potential of the digital future. As the economic outputs and risks from digital business systems increase and expand, boardroom effectiveness is vital to how companies use and protect the digital business systems delivering their future.
As fiduciaries, asset managers such as Blackrock, Vanguard, State Street and others deploy investment stewardship programs that share the common objective of promoting and strengthening boardroom effectiveness to safe-guard assets and enable investment returns for the companies they invest in on behalf of their clients. Those programs are an underleveraged source of value creation and protection in the digital economy.
Vanguard states their stewardship responsibilities as “…a clear mandate to safeguard and promote long-term investment returns at the companies in which our funds invest.”
State Street puts it succinctly when they say “We believe our portfolio companies must have effective oversight and governance of opportunities and risks that are material to their businesses and that they should disclose how they are overseeing such risks…
