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Governance

Rules
Biz StrategyGovernance

‘Rules of Procedures’ of a Corporate Board: In the best interest of …?

One of the things usually approved at the constituent board meeting after every company AGM are the board of directors' ‘Rules of Procedure’. What looks, and is often perceived, as a formality though, at close looks carries not just formal weight, but indeed formulates – directly or between the lines – the duties of the board. What do these rules typically enshrine - and what not?
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Coaching
Biz StrategyOpinions

Are business coaches the better board directors?

Most boards are composed of former or present CEOs, CFO and other C-suite executives. People, hence, with a long track record of ‘getting stuff’ done. A board’s role however is very different from that of an executive: digging deep by asking those overly simple questions that give interesting answers, digging deep into rationales, values, hopes, expectations, shut up doubts, and personal agendas. Which is what good coaches typically do. Are coaches the better board directors?
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Telling Fairy Tales in the Board Room
Book ReviewsGovernance

Beating the dragons: Fairy tales in the board room

Fairy tales are typically something for kids. Particularly young kids. Over the centuries they have been used to convey fundamental social mores, warnings from danger, and to inoculate a shared understanding of what ‘good’ and ‘bad’ looks like. These characteristics though make fairy tales an ideal, if very uncommon, vehicle to convey information and learnings also in management literature. This book hence is a rare find.
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Carbon Pricing
Biz StrategyFinanceOpinions

Carbon Pricing: A Dilemma to happen. Or: When Ethics meets Market Economy

Pricing the ton of carbon is a key matter – more so as an increasing number of companies aim at publicly claiming carbon neutrality. Carbon hence has a price – and this raises the much discussed question: What is a fair (or better: ‘correct’) price for carbon? In this post I present a glimpse of some of the challenges and realities related to the topic. It leaves us with the question: What went wrong in the current system that fundamentally asks us to choose between having to monetarily price natural and societal resources, and a fair, equitable access to these resources specifically for hard hit communities? The question alone should not be even asked. And yet it seems that’s what we’re left with given the current time and age.
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Bias Lense
Biz StrategyDefinitionsGovernance

Cognitive Biases on the board and Corporate Climate Change Inertia

The influence of decision bias is nothing new when scrutinising corporate governance. And yet: by and large businesses continue to fail to adjust their strategic decision-making processes to become more climate viable. At best they have just barely started on their journey. Why is that? As we look deeper into the corporate discourse on Climate Change, it becomes evident that one of the silent yet crucial culprits behind the climate change inertia lies in the cognitive biases at play in corporate decision making. What are those biases, what do they mean for boards in the context of strategic Climate Change decisions, and what can be done about it?
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Sustainable Business Leadership in 2030 - Four Scenarios
Biz StrategyGovernanceOpinions

Companies & Sustainability: Who leads it? And how?

If you’ve ever been part of a bigger discourse about how to scale out sustainability economically and globally, you’ll have been quick to notice that by and large you’ll be faced with representatives of four distinct camps of advocates: The Grassrooters; the 'Setting the tone at the top' people; those in support of government regulation driven by civil society; and the 'Fiduciary Duty Advocates'. But which camp owns the driving leadership role? Funnily enough, that role does get handed around as if it was a game of musical chairs ... or the proverbial hot potato.
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COP28
FinanceGovernanceOpinions

COP28: An Important Step – Just Differently So

COP28 yielded mixed results, featuring some historic 'firsts' such as a fossil fuel phase-out commitment, a $700 million loss and damage fund, the recognition of nuclear energy, and (this is huge!) a pointed spotlight on food systems' role in adaption. Most of the old challenges though remain: It's all carrots and no sticks. Which shows in the continued absence of enforcement of Climate Targets or their stringency, and the eye-level conversation with Global South nations.
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Toshiba Robot
Future TechGovernance

Digitalisation in the age of Corporate Responsibility

How does digitalisation impact and link to corporate responsibility? This is the question we look into in this post. Combining the two disciplines results in a range of interesting questions. For example: If humans create non-human agents (e.g. in the shape of AI): For what, towards whom are these responsible? And: are they responsible at all - or is it their creator who is?
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Baggage
Biz StrategyGovernance

Distinction-cum-baggage: The board director’s track record

A recent Bloomberg article found: of more than 600 directors and executives of the world’s 20 largest banks, only few individuals had experience in renewable or sustainable industries. Far more had ties to polluting industries: At least 73 individuals even have at one time or another held a position with one or more of the biggest corporate emitters of greenhouse gases, including 16 connected to oil or refining companies. The irony: it is precisely the directors’ prior track record and experience, one of the very reasons why they got (s)elected onto the board, that could jeopardise their board’s forward decisions.
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Tennis Ball and Court
Biz StrategyFinanceGovernance

Dropping the Ball: How sustainability (ESG) competent and capable are boards?

Expertise is a key discussion topic when it comes to board composition. Not only during the hiring process, but also when looking at the tenure in and renewal processes of board. According to a recent article by Board Agenda: a number of risks that have raised Directors & Officers concerns, and even litigation. These include [...] climate change and environmental issues; the #MeToo movement and other societal risks and merger objection litigation. Hence the question is: How sustainability (ESG) savvy and capable are boards?
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Plastics Packaging in Bales
Biz StrategyCircularityGovernance

EU Plastic Waste Tax – Or: What went wrong, when compliance fuels R&D?

The cat is – long-time coming - finally left out of the bag: while drawing up a Covid19 recovery package, EU legislators have decided to introduce a levy on non-recycled plastic as per 1st of January 2020. Reading through the text, two points offer a considerable surprise: The short notice, the wording, and the focus on packaging. But how come that legislators seem to drive the industry R&D agenda? Here a few questions for boards to ask their CEOs to get to the bottom of this.
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Diversity-and-Inclusion
Biz StrategyGlobalisationGovernance

Fashion Companies & their Boards of Directors: Rotten Eggs in a Diverse World

Diversity and Inclusion is a highly relevant topic not ‘just’ because it is all about equality and justice. But as long as entire parts of our global population remain disenfranchised, and desperate to just survive from day to day, tackling challenges - and in particular Climate Change - that affect all of us, indiscriminately, remains impossible. Boards of Directors set out the "Tone at the Top', also in matter of diversity and inclusion. In fashion companies, what exactly is the tone, the music, that they are creating?
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Odd one out Governance Ethics
GovernanceOpinions

For better or for worse: Governance is made by People

When it comes to governance, discussions about ‘Best Practice’ are frequent. What is often forgotten however: Governance, and notably ‘good’ governance, stands and falls with people. WHO sits on the board is hence at the very least as important as HOW that board is set up to operate by its procedures and surrounding legal constraints. Why is that so? And why is this often ignored?
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Biz StrategyFuture TechOpinions

Future Supply Chains: Baselines, Outlook

Supply chains, as a discipline of expertise, have come out of the hiding and recognise their role in reducing corporate risk. This is notably and specifically the case in fashion and textiles. At the same time, 'design' - not just in the creation room, but in all facets where it impacts the making, delivery and use of a product or service, is increasingly recognised as relevant.
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Leadership and Operations have complementary accountabilities in rolling out Sustainability
Biz StrategyGovernance

Getting Sustainability Done: Top Down ↔ Bottom Up – Who is Accountable for What?

‘The conversation is always about cost, not about impact!’ And: ‘Employees just don’t get moving!’ Do these statements remind you of your company’s challenges? Your not alone! Leadership and Operations Teams have complementary sustainability implementation accountabilities and responsibilities. But instead of leveraging that fact, more often than not the blame game is played. What to do about it? Implement Fair Process Leadership governance processes - and train all teams through Serious Games.
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Photo by Myriam Zilles on Unsplash
GovernanceOpinions

Health Care and the ‘S’ in ESG

The healthcare industry's social responsibility goes beyond just workplace and supply chain issues; it's about its impact on society and what its real goals are. Trials and prevention efforts often overlook certain groups. Politics and money regularly determine who gets treated, in function of political agendas in some jurisdictions. And: Using the GDP to measure health isn't necessarily helpful as it incentives fixing problems rather then preventing them early on.
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Tutorial, Field Manual, Type writer
Biz StrategyGovernanceOpinions

It starts with … Me, myself and I.
OR: a simple field manual to create (sustainability) disempowerment in organisations.

This manual was originally drafted when I was astonished by the way how ‘doublespeak’ is being used in organisations to prevent change. Any change. Including – but not limited to – sustainability related ones. It is a cynic-sarcastic-semi-realistic manual on how to be reasonably successful in disempowering an organisation. It is applicable to all areas that encompass change including innovation, sustainability, internationalisation, digitalisation and so forth.
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Brockman 4 Iron ore Mine train
Biz StrategyGlobalisationGovernanceMaterials

Juukan Gorge and Leadership Ethics – Compound interest of: technocratic lawyers + profit focus + racism

On May 24th 2020 Rio Tinto blew up the Juukan Gorge rock shelters in Australia, which ancestors of the Puutu Kunti Kurrama and Pinikura (PKKP) people occupied over the course of 46’000 years.There are a multitude of lessons to be learned from the entire process that lead to the disastrous blast of a site of such archaeological importance. But also from how the scrutiny in its aftermaths and the have been. Here a selection of just a few to think about.
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GovernanceSupply ChainTrade Shows

License to operate: Report from the European Business Ethics Network (EBEN) yearly conference

On September 12 to 14, I attended the European Business Ethics Network (EBEN) yearly conference in Lille, France. The theme of this year’s edition was ‘License to Operate’. I and my colleague Ilaria Pasquinelli, both presented a research paper, focused on sustainability and value generation in the fashion industry, and the status quo of knowledge on sustainable consumption habits respectively.
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