Translating Commonsense Governance Principles Into Action
A group of 12 prominent corporate executives and financial leaders recently a discussion of common-sense principles companies and boards of directors can use to follow the best practices of corporate governance.
The leaders included Warren Buffett, CEO of Berkshire Hathaway, and Jamie Dimon, CEO of JPMorgan Chase & Co. Others were chief executives of General Electric, General Motors, Verizon, BlackRock, Vanguard, and more.
Topics include the independence and diversity of corporate boards, breaking away from the obsession with quarterly financial forecasts, accounting standards, and engagement between a company and its shareholders.
“Their stated goal was to offer a set of recommendations on which they found common ground, in the hope of promoting further conversation on corporate governance and ultimately stimulating economic growth,” as described by The New York Times. “Indeed, the principles appear premised on the crucial, if understated, connection between effective corporate governance and economic prosperity. In that regard, they reflect the frustration that governance-based debate among investors, corporate leaders and other stakeholders has failed to produce the kind of change needed to support economic strength.”
