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
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We're focused on how to get some of the attributes that you would expect from an Amazon, Azure, Google, and doing that on-prem. We believe today that you can actually get those types of things done with certain architectures available in the market today," explained Steve Conner, VP of Sales at Cloudistics, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...