Strong Managers, Strong Owners: Corporate Governance and Strategy
The family firm preparing generational change, the partnership that welcomes new partners, and the shareholders of a firm that chooses to go public are making decisions that will have an impact on strategy and management. Conversely, a change in strategy such as a move to diversify or a decision to take on more risk in a business can make the firm more attractive to some shareholders and less attractive to others and is therefore not ownership neutral. Opening the black box of agency theory, Korine and Gomez show how management and ownership interact to shape the strategy of the firm. In their view, the critical question to ask is not what is the best strategy, but rather, who is the strategy for? With numerous detailed examples, Strong Managers, Strong Owners is an invaluable resource for company owners, board members and executives, as well as their advisors in strategy and governance.
Board ViewsFrom Corporate Governance of Sustainability to Sustainable Corporate Governance
What is the best way to integrate sustainability into the corporate governance framework? Boards of directors have chosen two distinct paths: the functional way, which focuses on corporate governance of sustainability, and the foundational approach, which leads to sustainable corporate governance. This article assesses the merits and limitations of both approaches and calls for a transition to sustainable governance. This requires board members to engage regularly with stakeholders and to continuously debate the underlying assumptions to further develop the governance framework as required.
