Click here to close now.




















Welcome!

News Feed Item

The Conference Board Report Calls for Investor Engagement to Rebuild Corporate Trust and Drive Economic Growth

Governance Task Force Issues Recommendations for Balancing the Roles of Boards and Investors in Corporate Governance

NEW YORK, March 11, 2014 /PRNewswire/ -- With the political and economic aftermath of the financial crisis still unfolding, trust and confidence in business remains lower today than it was in 2008. Yet according to a Task Force of The Conference Board Governance Center, opportunities also abound to successfully recover public trust — if companies are able to act decisively and with a unity of vision and responsibility shared by management, the board of directors and investors.    

Many argue that the corporate governance system is fundamentally broken. Such mistrust animates not only legislators and street protesters but also powerful institutional investors; in fact, some now believe activist shareholders should take on oversight roles traditionally vested in boards. As the 2014 proxy season reaches its peak, ongoing investor activism increases the importance of effective engagement between corporations and investors.

The Governance Center Task Force on Corporate/Investor Engagement is the first comprehensive collaboration of representatives of both companies and investors, bringing together directors of public companies and leading investors to examine these issues through a series of public forums, expert reports and commissioned research. The Task Force concluded that fixing corporate governance — and, ultimately, restoring trust in business — calls for an open, yet purpose-driven process of reestablishing alignment between corporate strategy and investor interests.

"Corporations and their investors have an important role to play in helping to restore trust in business," said Pat Russo, co-chair of the Task Force and Director at Alcoa, General Motors, Hewlett Packard, and Merck. "That's why the Task Force was assembled and why, after extensive investigation and debate, we developed this set of recommendations as a first step in aligning the interests of investors and the companies they invest in to stimulate economic growth and prosperity."

The Task Force, with the assistance of an Advisory Board of leaders in corporate governance from the corporate, investor and academic worlds has developed a comprehensive discussion of the need for a strategic approach to engagement and the nuts and bolts of creating such a strategy. Based on Advisory Board work and the accompanying white paper findings, the Task Force developed strategic recommendations to address:  

  • Why directors and investors must together reaffirm the principle that the interests of all stakeholders — including customers, employees, suppliers, communities, and the environment — are key to business success, and thus shareholder value in the long term.
  • Why board-centric, rather than shareholder-centric, governance remains the optimal model for corporate decision-making, and how directors can adapt this model to incorporate more investor input and build stronger collaboration while retaining primary oversight responsibility.   
  • How investors can most effectively, responsibly, and openly utilize the power of their votes to work with the board and management.
  • Which regulatory changes may have a big impact in shaping a more accountable, effective, and transparent relationship between corporate boards, investors, and the public.

"Previous crises in capitalism have shown that we can restore trust through governance," said Simon Lorne, co-chair of the Task Force. "But business leaders — from corporations and institutional investors — need to take the initiative by clearly advocating and articulating a strategy to transcend the status quo. Considering the diverse array of perspectives represented on the Task Force, we believe we're in a good position to formulate governance recommendations and encourage their widespread adoption. That task starts today."

About the Task Force on Corporate/Investor Engagement

The Task Force was formed to examine the facts, issues, and policy implications of U.S. corporate governance and issue research and recommendations aimed at influencing corporate directors, investors, and policy makers to help create a stronger corporate governance system through effective engagement. The Task Force is comprised of board members of leading corporations, institutional investors and hedge funds. 

In addition to the recommendations on corporate/investor engagement, The Conference Board Governance Center published a white paper that reviews the historical development of the current U.S. corporate governance system, including key challenges, and a practical set of guidelines for engagement between senior management and directors of a public company and their investors. All of the materials can be found at The Conference Board Governance Center website at http://www.conferenceboard.org/governance.

About The Conference Board

The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

Follow The Conference Board
Twitter | Facebook | LinkedIn

SOURCE The Conference Board

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Scrum Alliance has announced the release of its 2015 State of Scrum Report. Almost 5,000 individuals and companies worldwide participated in this year's survey. Most organizations in the market today are still leading and managing under an Industrial Age model. Not only is the speed of change growing exponentially, Agile and Scrum frameworks are showing companies how to draw on the full talents and capabilities of those doing the work in order to continue innovating for success.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at @DevOpsSummit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, presented a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mocku...
Graylog, Inc., has added the capability to collect, centralize and analyze application container logs from within Docker. The Graylog logging driver for Docker addresses the challenges of extracting intelligence from within Docker containers, where most workloads are dynamic and log data is not persisted or stored. Using Graylog, DevOps and IT Ops teams can pinpoint the root cause of problems to deliver new applications faster and minimize downtime.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.