Setting the Right Foundation
Good Governance Forms the Building Blocks to a Better Future
In the final part of the series, FTI Consulting considers the “G” of ESG and the role governance has to play for management teams, as the cornerstone of business longevity and sustainability.
Whilst environmental and societal best practice will form the pillars supporting sustainable business growth, corporate governance will be the foundation on which such growth is built and realised.
Governments, economies and industries around the world are now tasked with putting the right strategies in place to manage the transition to life in the pandemic. The ability for any organisation to adapt, stay resilient and remain successful will only be as strong as the governing principles and structures guiding them through the transition. As Boards and management teams consider survival post pandemic, they must first ask themselves whether they have the right governance framework in place to enable them to do so.
There has been intense media scrutiny surrounding management decision making – from over-boarding and share buy-backs, to dividend repayments and executive remuneration. For those Boards grappling with these issues right now, some will be more advanced in their response, some will be lagging behind, and others will be in a state of flux as they continue to iterate their approach. However, what is common for all Boards and management teams is the need for all plans, policies and business decision making to be underpinned by strong governance.
Below we offer a broad view of some of the factors at play, highlighting some key considerations for organisations to think about when looking at their governance frameworks.