Latest Edition of Flagship Publication Highlights Shareholder Responsibility, Boardroom Diversity and Cybersecurity as Top Governance Issues
Washington — Business Roundtable today published the 2016 Principles of Corporate Governance — providing public companies with the most modern guidance for upholding the highest ethical standards and delivering long-term economic value.
The new edition of the flagship publication tackles the key challenges and opportunities that are shaping today’s business environment and corporate leadership decision-making.
“America’s top companies play an important role in maintaining the health of the U.S. economy. And as the leaders of those companies, we see up close how the governance of public companies impacts the country’s economic health over the long run,” said John Hayes, Chairman, President and Chief Executive Officer, Ball Corporation, and Chair of the Business Roundtable Corporate Governance Committee.
“No one approach to corporate governance can possibly serve all companies. That’s why the updated Principles are a guide to help each company develop the structures, practices and processes that are appropriate in light of their needs and circumstances.”
The Principles detail the key roles and responsibilities of the board of directors and senior management. America’s CEOs have also used the 2016 publication to increase their emphasis on the issues and trends driving governance today. These principles include:
- Shareholder Engagement. Greater, regular shareholder outreach and dialogue are critical to developing effective and beneficial investor relations. In addition, as shareholders attempt to grow their influence on corporate decision-making, their responsibility and accountability should increase too.
- Boardroom Diversity. Diverse backgrounds and experiences on corporate boards strengthen board performance and, in turn, drive long-term economic value. Boards should develop a framework for identifying appropriately diverse candidates, which asks the nominating / corporate governance committee to consider women and / or minority candidates for each open board seat.
- Cybersecurity. As part of a company’s business resiliency steps in our global economy, management should identify the company’s major business and operational risks — including those related to cybersecurity.
To see more from the Principles of Corporate Governance, click here.
Earlier this year, Business Roundtable released a plan for stronger economic growth and job creation. For more information on the plan to create greater momentum for America, visit BRT.org/growth.