This report argues that board members may be overlooking the importance of group dynamics - the human element and the biases that everyone naturally brings to the table.
It lays out how boards can spot the issues that may be holding them back in four key areas: authority bias, groupthink, status quo bias, and confirmation bias.
When it comes to attracting, developing, and retaining talent, corporate board members have long been an underutilised asset, largely relegated to traditional board compensation committees.
Some companies, including JPMorgan Chase, Walmart, and Dupont, are expanding the mandate of these committees, but this article recommends boards go even further and create a broader and more dynamic ‘people committee,’ with three chartered responsibilities: 1) CEO succession; 2) Driving cultural accountability; and 3) Shaping the workforce of the future.
The European Confederation of Directors Associations (ecoDa) is a not-for-profit association that represents approximately 55,000 board directors from across the EU.
The objective of this report is to advocate five European Corporate Governance Guidelines and 50 good practices that are conducive to sustainable and profitable growth, and will help address environment and social challenges.
The report also outlines five megatrends and their implications for corporate governance (see below).