Modernizing governance: key recommendations for boards to ensure business resilience

In today’s complex and uncertain world, focusing on near-term shareholder value alone is no longer enough to ensure long-term business success. Sustained value creation requires companies to manage business performance to ensure that sustainability matters that affect business value are addressed. At present substantial value is being destroyed by governance systems that fail to address wider sustainability matters affecting the company.

The board has ultimate responsibility for navigating emerging issues and changing societal demands that could influence its long-term prospects. In this context, ensuring business resilience requires boards to consider the relevant factors, including ESG factors that could affect the long-term value and viability of the business model. Yet many boards remain ill-equipped to oversee and assure the company’s capacity to appreciate, and act on, the changing landscape.
By addressing emerging and increasingly relevant impacts and dependencies, boards are better equipped to make informed decisions about strategy and to provide robust oversight while delivering on their fiduciary duties.

View the publication here in English and in Japanese.