Knowledge Center: Publication
Chief Executive Officer & Board of Directors
2014 Asia Pacific Corporate Governance ReportSubscribe to Chief Executive Officer & Board of Directors 6/16/2014
Boards today have moved beyond governance to ensure they create a dynamic which delivers true value to their companies, shareholders and stakeholders in an increasingly complex global business environment.
Despite differing cultural and regulatory contexts in different countries across Asia Pacific, some common themes emerged from our research.
It clearly identified four ‘capabilities’ that were accepted as the foundation of a board’s ability to perform. But what is interesting is the gap between countries and between non-executive and executive directors in relation to how importance and performance are perceived.
The remaining issues that were assessed emerged as the building blocks for these capabilities. We called these the ‘drivers’ that serve to develop these capabilities into best practice.
There are nine drivers, four of which are core to best practice board effectiveness, and five of which play a supporting role.
These drivers can have a positive impact on the capabilities and are consistent across each of the countries. But again, there are marked differences between countries and between non-executive and executive directors in relation to perceptions of importance and performance.
However, these differences need to be seen in the context of each country or role. The power of context raises the question as to ‘why is it so?’
While performance may not live up to aspiration in many cases, and the context needs to be considered, all agree that the development of strong board effectiveness needs to be a major priority for governments and organisations.