Last year was a headline-making year in the governance space, with the evolving purpose of a corporation and other prescient topics generating national attention. PwC’s Paula Loop highlights governance trends boards need to be aware of in 2020.
It’s 2020 – the beginning of a new year and decade – and the dialogue and sentiment around business is changing. What are the big topics of conversation going to be this year? There are several.
For one, there will be more conversations about the role of the corporation as expectations grow for companies to define their purpose and balance the interests of their broader stakeholder group. Topics like social issues, talent matters and corporate culture will also set the tone for 2020. And crisis management will be a common topic of discussion – because any topic can easily manifest into a crisis, and boards need to be prepared.
Here is a snapshot of what’s happening and what your board needs to know to get your arms around this changing sentiment:
1. A Continued Dialogue on the Purpose of the Corporation
After decades of general support by U.S. businesses for Milton Friedman’s view of shareholder primacy, the thinking about a company’s purpose has started to change. BlackRock CEO Larry Fink’s recent letters to shareholders and the Business Roundtable’s…
