We all know the importance of effective communication, in both formal and informal settings, to get our messages across as intended. But how many times have we been misunderstood, or we didn’t understand an idea someone else was trying to convey? The consequences of bad communication range from simply extending a conversation to gain clarity, […]
Richard M. Steinberg
Posted inBoards & Shareholders
Delivering Peace Amid Shareholder Anger
It’s extraordinarily clear that shareholders are angry! They’re angry about lots of things, from opaque or otherwise bad financial reporting to outrageous CEO compensation, poison pills, staggered boards, and anything else that emanates from the thought that boards of directors are not doing their jobs. The underlying cause, some say, is a still too-cozy relationship […]
Posted inData Privacy
Why It’s So Shocking Societe Generale Was Shocked
By now we’ve all seen the headline—“French Bank Rocked by Rogue Trader!”—heralding the debacle at Societe Generale as the largest bank fraud in history. Then come the details: A “mid-level” employee, unbeknownst to anyone else at one of the most venerated banks in France, bet $73 billion of the bank’s money, costing it $7.2 billion. […]
Posted inFrom the Archive
How Governance Failed in the Sub-prime Mess
It’s difficult to pick up a newspaper or visit a business news Web site without encountering yet more information about the sub-prime mortgage mess—and “mess” is probably too kind a word. With the extraordinary losses and personal pain, terms like “debacle,” “fiasco,” or “disaster” are more accurate. With each new report we learn a bit […]
Posted inBoards & Shareholders
What’s Coming in Governance in 2008
For several years now in my holiday season columns I’ve put forth a wish list for improvements in corporate governance. This year (again with a mug of hot chocolate in hand) I’d like to take a crack at predicting what we might see in governance in the coming years. So, as you listen to the […]
Posted inInternal Controls
Empowering CEOs in a Shifting Landscape
My last two columns dealt with the tug of war between boards of directors and shareholders and how boards are best comprised to effectively carry out their responsibilities. Central to these issues is the relationship with the chief executive officer; specifically, how to provide the kind of oversight that enables the CEO to run the […]
Posted inBoards & Shareholders
Composing Your Board the Right Way
Last month’s column,“Tug of War Between Board and Shareholders,” focused on shareholders’ demands for greater involvement in governance, including determining who sits in the boardroom. My message was to be careful what you wish for; there’s great danger in having board composition driven by disjointed parties with self-appointed agendas. Here I’d like to look further […]
Posted inBoards & Shareholders
Tug of War Between Board and Shareholders
The war between boards of directors and shareholders has been raging for many years, heating up and cooling down based on success or failure, evolving goals and opportunities, and opponents’ actions. Some might not see it as a tug of war, instead viewing the respective roles of boards and shareholders as continuing to evolve and […]
Posted inEthics & Culture
The Role of Gifting in Corporate Social Responsibility
Many large (and not-so-large) companies have embraced a measure of responsibility for social needs, based in part on the premise that the corporation owes its existence to the state, or society, and consequently should be a good citizen. Few would argue with this. The term “corporate social responsibility” typically begins with a focus on such […]
Posted inEthics & Culture
Being Legal, Honest, And Candid And …
As a Compliance Week reader, you know well the difference between taking an action that’s legal and one that’s ethical. “Legal,” of course, includes acting according to written laws and related regulations, as well as what is deemed legally correct by the judicial system. Acting ethically involves going beyond what is legal, focusing on principles […]