Corporate Governance in the Boardroom

A practical perspective

Corporate Governance is not just an ethical responsibility for the board, but a strongly commercial one as well. Creating and sustaining effective corporate governance will generate a range of business benefits that combine to create higher trust, stronger resilience and enhanced competitive edge.

The bedrock of any successful business

In an era when trust in business is at a premium, and scrutiny from stakeholders is ever wider and more intense, it has never been more important for organisations to behave in accordance with their core purpose and principles in order to protect reputation and trust.

Our latest thinking is that good corporate governance can be summarised under three main themes:

  • Good corporate governance is grounded on a clear view of what matters most to the business, the full range of risks facing the organisation, and how these risks relate to the business and its strategic priorities.
  • Good corporate governance begins and ends with the board, which is responsible for crystallising a clear corporate purpose, exhibiting the right values, and ensuring these are being acted upon.
  • Behaviour and decisions in the ‘moments that matter’ represent the ultimate test of good corporate governance – not least when a crisis hits.

Over the past three years, PwC has run a succession of seminars for non-executive directors focused on governance and risk. This paper summarises some of the themes covered, and encourages boards to ensure that their governance, especially when looked at through the lens of reputation and resilience, has adapted – and continues to adapt – to the high-pressure environment in which they operate.