Protected: Critical questions that face modern boards: Insights from Governance Institute’s International Conference
Future company values and board alignment
Diligent were honored to present an insightful panel at the recent Governance Institute of Australia International Governance Leadership Conference in Melbourne on the topic of Critical Questions for Modern Boards.
The audience were treated to many valuable insights from the deeply experienced panel of Helen Rowell, Non-Executive Director for the Australian Retirement Trust, and John Stanhope AM, the Chancellor of Deakin University and Chair of the Port of Melbourne.
In the context of the broader aim of the conference to explore The Human Condition, this panel explored what companies will value in 2030 and how it may impact all stakeholders of a business – something that Helen and John both agreed was vital for boards and their decision-making.
From Helen, we learnt the importance of a solid governance framework that promotes fairness and equity, where boards ask not just what they are doing but also how they are going about it. Taking the long-term view when making decisions was also crucial, as well as having a board that builds confidence, setting a culture of operating for all stakeholders.
The importance of businesses driving benefits for all stakeholders was a common theme, coming from the growth of a more socially conscious customer and employee base who continue to align themselves with companies that match their values.
John reiterated that when you cause harm to other stakeholders, you can destroy value, and boards should always think in an integrated way.
To ensure they are meeting their expectations for all stakeholders, Helen recommended boards ask themselves these five questions regularly:
- Are our purpose and values clear to all our stakeholders? i.e. customers, employees, partners etc.
- Do we have a robust strategy aligned to this?
- Will it deliver sustainable outcomes for all our stakeholders?
- Are we clear on what we want to do and how we want to do it?
- Do we have a strategy to engage our stakeholders?
From John, we heard about the diverse challenges that modern organisations face and how it’s more important than ever for executives and directors to operate as a team. These challenges were not a reason for companies to stop innovating, and companies need not only use a risk register, but also consider their risk tolerances that don’t stamp out that innovation.
Additionally, as employees’ needs change, companies need to embrace strategies that promote belonging and purpose. Younger workers tend to ignore mission statements, but they do buy into a good corporate purpose. That purpose is then what drives employees to feel like they belong. Boards can ask not just are we doing things right, but also are we doing the right things?
If you want to learn more about the future of modern boards as the AI revolution continues, sign up for the upcoming Diligent webinar on Mastering AI Governance Strategies and Ethical AI here.
Diligent is the leading GRC SaaS company, empowering more than 1 million users and 700,000 board members and leaders to make better decisions, faster.