scholarly journals Editorial: Strategy development for uncertain times

2021 ◽  
Vol 17 (2) ◽  
pp. 4-6
Author(s):  
Pedro B. Água
Keyword(s):  
Corporate Governance ◽  
Ethical Leadership ◽  
Boards Of Directors ◽  
Corporate Strategy ◽  
Strategy Development ◽  
Corporate Board ◽  
Strategy Formulation ◽  
Competitive Edge ◽  
Fit For Purpose

Corporate strategy is considered a central driver of a firm’s long-term orientation, a key influencer in corporate performance, and nowadays being impacted by an increasing business endeavour where complexity is the new normal. Corporate governance suggests that boards of directors have the duty to govern the firms they are responsible for, and doing so in a sustainable way. Hence, boards are supposed to make relevant decisions on corporate strategy. How is, however, strategy translated into the board agenda? Corporate governance faces a new set of challenges as a great deal of countries are progressively getting out of the pandemic constraints that have slowed economic performance for most businesses. The way strategies will be developed will dictate their fit for purpose. Such strategies will have to cope with increasing sustainability goals; provide a competitive edge against competitors’ technological edges and innovation in general. Such strategies will have to deal with innovative usages of IT and potential business disruptions that may be triggered by digital transformation. All such paradigm changes will demand more effort from boards, and force them to dive into unusual fields, such as learning about complexity and systems thinking. As important as strategy formulation is ethical leadership for strategy deployment and sustainability. Overall, such topics are placed high on boards agendas and are addressed in the current issue of Corporate Board: Role, Duties and Composition.

scholarly journals Benchmarking boards of directors for better corporate governance

2020 ◽  
Vol 16 (2) ◽  
pp. 8-18
Author(s):  
Hugh Grove ◽  
Mac Clouse ◽  
Tracy Xu
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Success Factors ◽  
Market Performance ◽  
Lessons Learned ◽  
Future Research ◽  
Corporate Board ◽  
Governance Practices

The key question and major lessons learned in this research are that individual companies and their boards of directors could use the board director benchmarking information compiled in the Conference Board Report to assess their own boards of directors’ corporate governance practices. For an initial benchmarking approach, this paper compared a poor long-term market performance company (Grove & Clouse, 2019) with a strong long-term market performance company (Grove & Lockhart, 2019). The following benchmarked differences in the boards of directors of these two companies were key success factors for constellation: specific industry knowledge, younger directors, coaching/nurturing, involved roles, long-term compensation of directors, no board entrenchment, board assessment, and board committee rotation. The major sections of this paper are literature review, corporate board practices, benchmarking board of directors: poor long-term market performance example, benchmarking board of directors: strong long-term market performance example, conclusions, and future research. A major limitation of this paper, which could be investigated in future research, is to analyze benchmarked board categories to see if they help explain differences in comparative long-term market performances by many companies since companies and their markets are diverse.

scholarly journals Opening the black box: Unpacking board involvement in innovation

2019 ◽  
Vol 18 (4) ◽  
pp. 487-519 ◽  
Author(s):  
Patricia Klarner ◽  
Gilbert Probst ◽  
Michael Useem
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Company Strategy ◽  
Behavioral Diversity ◽  
Pharmaceutical Firms ◽  
Scientific Innovation ◽  
Multiple Case ◽  
Temporal Dimensions

Corporate governance research suggests that boards of directors play key roles in governing company strategy. Although qualitative research has examined board–management relationships to describe board involvement in strategy, we lack detailed insights into how directors engage with organizational members for governing a complex and long-term issue such as product innovation. Our multiple-case study of four listed pharmaceutical firms reveals a sequential process of board involvement: Directors with deep expertise govern scientific innovation, followed by the full board’s involvement in its strategic aspects. The nature of director involvement varies across board levels in terms of the direction (proactive or reactive), timing (regular or spontaneous), and the extent of formality of exchanges between directors and organizational members. Our study contributes to corporate governance research by introducing the concept of board behavioral diversity and by theorizing about the multilevel, structural, and temporal dimensions of board behavior and its relational characteristics.

scholarly journals Editorial note: Theory and practices of the corporate board in the international context

2019 ◽  
Vol 15 (2) ◽  
pp. 4-6
Author(s):  
Montserrat Manzaneque-Lizano
Keyword(s):  
Corporate Governance ◽  
Editorial Note ◽  
Corporate Board ◽  
International Context ◽  
Interdisciplinary Dialogue ◽  
Governance Practices

Nowadays, literature and practitioners, from a theoretical and empirical focus, agree that corporate governance efficiency is essential to achieve the long-term sustainability of firms and institutions. This issue of the journal marks another step in this area, providing an interdisciplinary dialogue on diversity in corporate governance practices.

scholarly journals The role of Human Resources in Strategy Formulation

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Venet Shala
Keyword(s):  
Human Resources ◽  
Corporate Strategy ◽  
Visionary Leadership ◽  
Strategy Development ◽  
Strategy Formulation ◽  
Organizational Vision ◽  
Organizational Goals ◽  
Strategic Resources ◽  
High Level ◽  
And Control

Corporate strategy formulation is a very important process and requires serious and careful engagement. Any mistake in the first phase of strategic management (formulation) will result in problems in the next stages such as implementation and control. Today, organizations of different sizes, small and medium, and large, in the process of strategy formulation need the involvement of qualified, competent and talented employees that would influence the creation of a successful strategy. However, the main problem in designing an unsuccessful strategy lies in the fact that most companies in the process of strategy development involve high level hierarchical levels and consultants inside or outside the company, leaving aside most of the human resources that contribute to the success of the company. Various literature has emphasized that strategy formulation is an essential step in turning a company's vision and objectives into reality. Therefore, the visionary leadership of companies should be oriented towards giving more importance to human resources during the process of strategy formulation and involve any team member who can contribute to the realization of organizational goals and organizational vision. Through this paper we will present human resources at a higher level in terms of importance and provide conclusions and recommendations on how organizations today should value these strategic resources and achieve competitive advantage in the market. In this paper we will give an overview of Kosovar companies, the process of strategy formulation in these companies and analyze how human resources are involved in the process and what importance is given to them by the company.

scholarly journals Long-term stockholder and stakeholder value and corporate governance implications

2020 ◽  
Vol 2 (1) ◽  
pp. 18-26 ◽  
Author(s):  
Hugh Grove ◽  
Mac Clouse ◽  
Tracy Xu
Keyword(s):  
Corporate Governance ◽  
Business Strategy ◽  
Boards Of Directors ◽  
Research Question ◽  
Initial Step ◽  
Vital Role ◽  
Clear Understanding ◽  
Sustainable Value ◽  
Key Indicators

The key research question of this paper is to explore the major implications for corporate governance from the emergence of long-term stockholder and stakeholder value perspectives for the purpose of a corporation. The major implication for corporate governance is the significant opportunity for boards of directors to play a vital role in helping companies create long-term sustainable value. An initial step is to develop a clear understanding of the company’s business strategy and how long-term value is created through innovation and deployment of resources. Boards of directors need to understand what really creates long-term value in their companies and then make sure their companies develop ways to measure and manage such value in order to be able to “govern like owners” and fulfill their fiduciary roles. To facilitate this fiduciary role, McKinsey & Company’s Corporate Horizon Index with its five key indicators, investment, earnings quality, margin growth, quarterly management, and earnings-per-share growth, and their related hypotheses and measurement approaches can be used as a roadmap.

Corporate governance and carbon transparency: Australian experience

2018 ◽  
Vol 31 (3) ◽  
pp. 405-422 ◽  
Author(s):  
Jibriel Elsayih ◽  
Qingliang Tang ◽  
Yi-Chen Lan
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Corporate Strategy ◽  
Ordinary Least Squares ◽  
Board Diversity ◽  
Content Type ◽  
Carbon Reduction ◽  
Corporate Executives ◽  
Australian Experience

Purpose The purpose of this paper is to explore the association between corporate governance (CG) mechanisms and the extensiveness of carbon disclosure. Design/methodology/approach This paper uses Ordinary Least Squares (OLS) regression model with data from 2009 to 2012 for largest Australian companies that voluntarily disclose their information to the carbon disclosure project. Findings The authors find that board independence, board diversity and managerial ownership are significantly correlated with the degree of carbon transparency, while the existence of environmental committee is not. Practical implications The findings of this paper should be useful for government and capital market regulators who concern the quality of CG and carbon actions. First, the evidence in this paper suggests that current CG practice that emphasize board diversity and independence seems encouraging an environment friendly decision and adopt carbon reduction initiatives. Second, however, the current version of CG codes need more stress on none financial goals that should help corporate executives to balance value enhancement vis-à-vis ecosystem protection. Finally, another implication for policy-makers is CG should be re-structured so as to motivate firms to pursue long-term sustainable development instead of taking short-sight view of firm performance. Originality/value This paper contributes in the increasing body of literature indicating that CG encourages a proactive corporate strategy in general and carbon disclosure in particular. The authors add new empirical evidence which has policy implication that CG should be improved so as to encourage executives to engage in more sustainable development and stakeholder long-term value protection.

scholarly journals Do Boards of Directors Really Matter in the Cooperation Behavior of Firms? An Exploratory Analysis in Spain

2020 ◽  
Vol 12 (23) ◽  
pp. 10114
Author(s):  
Maria Sonia Medina-Salgado ◽  
María Sacristán-Navarro ◽  
Luis Ángel Guerras-Martín
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Corporate Strategy ◽  
Financial Firms ◽  
Board Of Director ◽  
The Board Of Directors ◽  
Internal Mechanism ◽  
Director Characteristics ◽  
The Relationship ◽  
Management Effect

This paper explores the relationship between one of the major aspects of the internal mechanism of corporate governance, i.e., the board of directors, and the corporate strategy of cooperation. The study was designed to investigate whether certain board of director characteristics have an influence on the propensity to cooperate in Spanish listed non-financial firms. Our findings reveal that the propensity to cooperate in Spanish firms is driven more by a tight “management effect” whereby the highest probability of occurrence is related to firms with duality on their boards and a lower proportion of nominee directors representing controlling shareholders. This paper adds evidence to the corporate governance-corporate strategy (alliance propensity) discussion in a continental country such as Spain.

scholarly journals EU sustainability directive and corporate governance: Implications for 15 of the largest EU companies

2017 ◽  
Vol 14 (3) ◽  
pp. 329-337 ◽  
Author(s):  
Hugh Grove ◽  
Maclyn Clouse
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Sales Growth ◽  
Public Companies ◽  
Good Corporate Governance ◽  
Ceo Pay ◽  
Key Variables ◽  
Sustainability Practices ◽  
The Eu

This paper analyzes 15 of the largest EU public companies, including Volkswagen, that were included in Forbes’ 2015 list of “The World’s Biggest Public Companies” in order to investigate possible best practices for long-term sustainability, as emphasized by the EU Sustainability Directive. CEO pay and various well-known financial ratios were correlated with market capitalization creation to create a sustainability score which was then correlated to market cap creation to indicate possible long-term sustainability practices. Key correlations were CEO pay, sales growth, profit margin, and leverage or adequacy of capital. Such key variables could then be monitored for possible long-term sustainability practices by Boards of Directors for good corporate governance, as opposed to recent bad corporate governance by Volkswagen. In just the last year, Volkswagen managed to destroy all the prior three years of its market cap creation.

scholarly journals Corporate governance under conditions of crisis

2021 ◽  
Vol 128 ◽  
pp. 01039
Author(s):  
Aybika Beksultanova ◽  
Andrey Seleznev ◽  
Saida Shardan
Keyword(s):  
Corporate Governance ◽  
Crisis Management ◽  
Boards Of Directors ◽  
Negative Effects ◽  
Current Crisis ◽  
Governance Practices ◽  
The Board Of Directors ◽  
Long Term Impact ◽  
Strategic Context

The study investigates the consequences of the COVID-19 virus pandemic on the activities of the board of directors, corporate governance practices and the strategic context of companies’ activities. The purpose of the study - assess the readiness (after the fact) of the boards of directors to act in a crisis situation, the specifics of the practice of the boards of directors in the new realities, expectations of the long-term impact of the COVID-19 pandemic on corporate governance practices and the strategic context of the company’s activities. The article outlines some issues that are worth considering and that may be useful to the company’s management in terms of crisis management. A set of proposals has been formed to reduce the negative effects associated with the consequences of the pandemic for corporate governance, as well as ideas and practical proposals that can help companies reduce the costs of going through the current crisis.

Thoughts on the Long-Term Strategy, Science and Democracy

2006 ◽  
pp. 4-19 ◽  
Author(s):  
L. Abalkin
Keyword(s):  
Strategy Development ◽  
Russian Science ◽  
Global Trends ◽  
The World ◽  
World Development ◽  
Crucial Condition

The article covers unified issues of the long-term strategy development, the role of science as well as democracy development in present-day Russia. The problems of budget proficit, the Stabilization Fund issues, implementation of the adopted national projects, an increasing role of regions in strengthening the integrity and prosperity of the country are analyzed. The author reveals that the protection of businessmen and citizens from the all-embracing power of bureaucrats is the crucial condition of democratization of the society. Global trends of the world development and expert functions of the Russian science are presented as well.

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