PUBLISHED 06/2024
EVENT - GOOD GOVERNANCE IN A CHANGING WORLD : IFA ANNUAL MEETINGS 2024
Good Governance: A Subtle Balance Between Economic and Societal Efficiency
In a world marked by great uncertainties and profound changes, “good governance” is no small feat. Can economic performance and societal performance be reconciled?
Key Corporate Governance Issues:
- Board Composition: A necessary balance between expertise and diversity.
- Transparency: An imperative for building trust and engagement.
- Corporate Social Responsibility: Integrating environmental, social, and economic concerns into strategic decisions.
- Training: Essential for directors. It’s a start, but it’s not enough!
Creating Shared Value: 35% of boards address the topic in their work, yet 81% of them dedicate less than 2 hours per year to it. In the era of new individual and collective aspirations, creating shared value becomes crucial.
Power Sharing: Involving stakeholders more in decisions becomes a necessity, making everyone agents of change. Indeed, 14% of boards have included stakeholders (other than traditional constituents) in the debate. 29% of boards are considering it, while 57% are not considering it at all. Stakeholders mentioned remain very close to the immediate ecosystem of companies, while society, nature, or new generations, for example, are not cited.
“Good governance” is above all a holistic approach that aims to reconcile economic performance and social responsibility. No “good governance” will occur without the courage of leadership.
Congratulations to IFA directors and engaged board members for organizing this Engaged Directors’ Day 2024. A beautiful community of 3,600 board members gathering today to make our companies vectors of positive change for tomorrow.
