Boardroom INSIDER for… JANUARY

 

CORPORATE CRISES – WHY IS THE BOARDROOM OUT OF THE LOOP?

(Jan. 2From missing airliners, to faulty auto ignition witches, to massive cyberhacking exploits, 2014 was a year for corporate crises. Yet these and many more business disasters were made worse when their corporate boards of directors proved out of touch, ill-informed, and dead weights in shaping a crisis response, says a special report in the January issue of online governance monthly Boardroom INSIDER.

BI publisher and governance speaker Ralph Ward faults corporate crisis planning “that views the board as an afterthought.” But leaving the boardroom out of crisis planning can compound a disaster, he notes. Lack of board involvement means directors can’t perform their fiduciary duty to effectively monitor the plan, or even know if one exists. Further, board members “are one of the most valuable corporate resources,” notes Ward, with IR, legal and political savvy that will go untapped just when the company most needs it.

Finally, the boards of major companies are increasingly in the public eye. So what happens when “a crisis strikes, and an enterprising reporter gets one of your directors on the phone?” Ward asks. “How will it look if that’s the first news he’s heard about it?”

Also in the January Boardroom INSIDER:  

pinkHow to build your board into company crisis response planning.
pinkWhy does CEO succession planning cost so damn much (and what can you do about it)?
pinkQ&A: When one of your directors is a boardroom “tattletale.”