New Cross-Sector Study Will Examine Role of Corporate Boards in Driving Success in Long-Term Performance
NEW YORK, April 16, 2019 /3BL Media/– Today’s Boards of Directors are expected to play a more forward-looking strategic role that supports long-term performance. To explore this challenge further, CECP’s Strategic Investor Initiative, the High Meadows Institute, and Drexel University Gupta Governance Institute are launching a research project that will engage CEO’s, Directors and investors of public companies to obtain their perspective on the board’s role in strategy and how management can engage and support boards to play a more value-added strategic role. The project will also look at how best to communicate board effectiveness on long-term strategy to the capital markets.
“For companies to succeed over the long-term, their boards need to play an active and engaged role in long-term strategy,” said Brian Tomlinson, Research Director, SII. “This research project will deliver concise guidance to support the board’s role in long-term strategy and clearly communicating that role to the capital markets.”
“Our recent research indicates that directors recognize that boards need to play a more forward-looking and strategic role if they are to fulfill their governance responsibilities and provide value to shareholders,” said Chris Pinney, President and CEO of HMI. “CEO support is critical if boards are to play this more value-added role, and our joint research will provide insight into how CEOs and boards can more effectively work together on corporate strategy.”
“As we enter this new era of governance, we often hear about how challenging it can be to create a dynamic between management and the board that allows for a more strategic, value-added role,” said Patricia Q. Connolly, Executive Director of GGI. “Our goal with this initiative is to provide practical steps in overcoming those challenges to have an impact on moving governance forward.”
The project was announced today at Gupta Governance Institute’s Directors Dialogue, a full-day event bringing together corporate directors to engage in candid discussions of key governance topics.
Early research by HMI identified several issues to be addressed if boards of large public firms are expected to play a more forward-looking strategic role. These range from the composition of boards to director compensation and time commitment, to committee structures and roles, to how the board agenda is set. Directors have pointed out, however, the key to effectively addressing any of these issues requires the active support of the C-suite paired with a definitive shift in perception of the board and the role it could and should play as a partner in strategy.
More information about SII, it’s series of CEO Investor Forums, original research, and recent publications be found at http://cecp.co/SII. More information about the project and the Raj & Kamla Gupta Governance Institute can be found at https://www.lebow.drexel.edu/governance. Contact Jackie Albano for more information.
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ABOUT CHIEF EXECUTIVES FOR CORPORATE PURPOSE (CECP)
CECP is a CEO-led coalition that believes that a company’s social strategy — how it engages with key stakeholders including employees, communities, investors, and customers —determines company success. Founded in 1999 by actor and philanthropist Paul Newman and other business leaders to create a better world through business, CECP has grown to a movement of more than 200 of the world’s largest companies that represent $11.3 trillion in revenues, $23.8 billion in societal investment, 17.4 million employees, and $15 trillion in assets under management. CECP helps companies transform their social strategy by providing customized connections and networking, counsel and support, benchmarking and trends, and awareness building and recognition.
ABOUT THE STRATEGIC INVESTOR INITIATIVE
The Strategic Investor Initiative is a coalition of thought leaders committed to the long-term movement. Collectively, SII is developing a new platform for leading companies to create, convey, and deliver long-term plans to long-term investors. SII’s vision is to spark the movement of trillions of dollars of capital to companies demonstrating performance excellence over the long-term. SII provides tools and resources designed to introduce and support market behaviors that ultimately deliver sustained long-term value for all stakeholders.
ABOUT THE RAJ & KAMLA GUPTA GOVERNANCE INSTITUTE
The Raj & Kamla Gupta Governance Institute at Drexel University’s LeBow College of Business uniquely aligns its preeminent academic research with diverse industry perspectives to develop cutting-edge programs and publications that support issues top-of-mind in today’s boardrooms. The Gupta Governance Institute is home to the Center for Corporate Governance and the Center for Nonprofit Governance, both leaders in shaping and influencing public, private, and nonprofit boardrooms, nationally and internationally.
ABOUT THE HIGH MEADOWS INSTITUTE
The High Meadows Institute is a Boston-based think tank and policy institute focused on the role of business leadership in creating a sustainable society. Founded in 2013 by a small group of senior business leaders from the private and nonprofit sectors, the Institute works in close partnership with thought leaders, academic and business leadership organizations and other policy institutes to drive positive change. Our team in Boston works with our board of directors and a global team of advisors and experts to deliver on our o