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
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...