Increasing board accountability, Hub – THE BUSINESS TIMES

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Fri, Feb 08, 2019 – 5:50 AM

The past year has had its fair share of corporate scandals and breaches of conduct by senior management. Some of these arose out of personal greed but there are also instances where employees brushed aside laws and regulations in order to meet their revenue targets or achieve their key performance indicators.

Admittedly, the business environment is getting tougher, with the emergence of new technologies and consequential disruption to traditional business models. Globally, the displacement of human capital, widening income inequality, and growing pressure for sustainable business practices have increased the scrutiny on board accountability.

Principle 1 of the revised Code of Corporate Governance (the Code) released in August 2018 provides that a company “is headed by an effective board which is collectively responsible and works with management for the long-term success of the company”.

As boards of directors plan their agenda for the coming year, several key issues loom.

Sustainability

The Corporate Governance Council, when amending the Code, decided to trim the overall length of the Code but added a new Principle 13, on managing…

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