Corporate board members have never suffered a situation like the global pandemic before. Shifting business priorities and growing cybersecurity emergencies have made them more answerable now. In this article at World Economic Forum, Richard Samans and Jane Nelson define a six-step leadership strategy for your board members. It will help you sustain long-term resilience while addressing growing social challenges.
Acquire In-Depth Learning
By putting stakeholder capitalism into practice, corporate board members can integrate governance, strategy, and operations. Integrated corporate governance is the core element of stakeholder capitalism. It provides practical insight into the regulatory and voluntary agendas.
Thus, the leadership priorities for board and executive members translate general principles into specific practices. If stakeholder capitalism is an optimistic vision, it requires integration to grow into operational and governance terms. Follow these areas to reinforce board stewardship:
Your corporate board must align and prioritize its strategic capital allocation. So, become adaptable to the new normal situation while accelerating digital makeover. By following the 4.0 industrial revolution, increase focus on value creation. Research and innovate an exceptional employee experience and engagement while bolstering your stakeholder relationships.
The board is accountable for the operational, financial, reputational, and regulatory inspections. Thus, acquiring a deep understanding of the fast-evolving environmental, social, governance, and data stewardship (ESG&D) risks becomes critical. It will give you oversight to identify hazards in the financial and operational areas. Review unconventional investment, inventions, and technical scope to mitigate the ongoing crisis.
Being a board member, you play a significant role in managing your company assets to deal with an unforeseen crisis. Analyze and conduct a ‘stress-test’ to maintain resilience against sudden blows. Keep crisis response plans ready to operate in challenging situations. Be agile to change strategies or business models, if required.
Initiate Collaborative Steps
Initiate advanced learning and training programs to help your staff deal with future uncertainties. Support those that might bear the brunt of automation. Shift to the online and remote working environment without ignoring the ‘fundamental economic shifts.’ Identify areas in which you can play a lead role without affecting regular operations.
Integrate an Advanced Model
Assemble your mainstream disclosures in an integrated manner that collaborates financial reporting with ESG&D risks and opportunities. It will help you maintain transparency and accountability with investors and stakeholders. Being a board member, you must provide oversight of evolving corporate governance agendas.
Engage in Economic Restraints
Your board must integrate ESG&D surveillance into distinct committee agreements. Form an exclusive group that can address regular risks and employee issues. Strive to balance committee-led initiatives and assimilating issues like business and succession planning. Also, engage the senior internal management while wooing the external stakeholders.
Click on the following link to read the original article: https://www.weforum.org/agenda/2020/06/integrated-corporate-governance-6-leadership-priorities-for-corporate-boards-after-the-covid-19-crisis/