Social Science > Third World Development > Download, free read

How to Improve Governance by David de Ferranti download in iPad, ePub, pdf

Enron was allowed to engageDiscovering it will depend on

Provide employees with an opportunity to contribute to the company manual by having them complete surveys or offer suggestions. In these joint ventures, the focus should be on solving specific problems. Tackle important, difficult and unpleasant issues immediately after the meeting starts. The relationship between lizard and human has not been the same since. Include an assessment of committees in a Board evaluation.

Use the Board book to inform, not persuade. Hire an external auditing or consulting firm to examine your corporate policies and behaviors. The governance advisory resources at the disposal of major development agencies should be redeployed massively into joint ventures with other advisory groups.

But directors do not all have the same informational requirements, since they differ in their knowledge, skills, and experience. Poor internal processes and procedures can lead to inadequate access to information, poor communication and uninformed decision making, resulting in a high level of dissatisfaction among directors. Having these rules in place makes it possible for business owners to codify governance and increase responsibility. Ask the Board to conduct separate evaluations of key executives at least once a year, but seek timely feedback in executive sessions or private conversations. In many cases, they will have to propose changes or ideas that will further improve processes and systems.

Enron was allowed to engage in risky accounting principles, conflict of interest transactions, undisclosed off-the-book activities, and excessive executive compensation. Discovering it will depend on several factors, with improved corporate governance leading the way. Conclusion Proper governance requires time and thought from committed leaders who understand the benefits of aligning every level of an organization to produce desired results. Senior management may try to keep corporate boards in the dark but that can only occur when a corporate board is not following basic governance principles. Interactions between senior managers and the board are critical to ensuring that adequate information is provided to the board.

Boards should consider addressing weaknesses uncovered in board evaluations through director development programs and enhancing their governance processes. On a regular basis, the board should conduct a self-evaluation process, including the performance of individual directors. The animated debate that followed has confirmed that it is a good time to be raising these issues. However, facilitating collective action solutions represents the upper end of the scale of ambition for donor-funded interventions.