Viewing posts categorised under: Effective-governance-news

Culture Club

Dr John Laker AO in the (AFR 15 November 2018 – Regulators can’t fix bank culture: Laker) reinforces what many like me have been saying and no doubt others have wanted to say about the board’s responsibility for organisational culture.  Laker says “…organisational culture is squarely the responsibility of boards, in the first instance…”.   

Monkey See, Monkey Do

Do we expect our boards to be role models? Will the current behaviour we have seen and continue to see identified in Royal Commissions and Inquiries have an impact on young people in society? Can boards in the financial services sector turn around the damaging lack of trust we continue to see displayed daily, despite the Banking Royal Commission.   

Umpire says he will change the game

Congratulations to David Locke, a good friend of Effective Governance, the Chief Executive Officer and Chief Ombudsman at the Australian Financial Complaints Authority (AFCA) which commenced operations today, Thursday 1 November 2018.  David knows the value of good governance, robust ethical culture and providing high quality service to consumers of financial products.  

Why Diversity?

Diversity is a topic that is bound to generate discussion. There are countries such as the UK that require data to be published on the number of women in management roles as well as the gender pay gap. This makes for great discussion, but for a middle aged man why should I really care, the current system is good for me … right?  

Cricket Australia Publishes Culture Review Recommendations

42 recommendations, 42 general if not banal responses. How will culture be improved by a focus on ethics? My wife hates cricket, says it’s boring and takes too long. I wholeheartedly disagree with her, I “love it”! But reading the recommendations from the supposedly comprehensive review was boring and took too long.  

Regulator regulating the regulators!

In my opinion piece ‘Who is Governing’ published on 4 October 2018 I acknowledged the regulators, ASIC and APRA have not always met community expectations.  I also highlighted boards have strict accountability for governing in the best interest of their organisations and I said, “The time has come for the directors and boards who are accountable for ensuring the proper and ethical function of our corporations to take back control”.  

People Risk: The Board Governance Series – Article 3

By: Ian Doyle, Specialist Advisor – People Risk & Melissa Grundy, Senior Advisor Effective Governance, part of the HopgoodGanim Advisory Group

Why a standard culture change program or engagement surveys are not the answer to mitigating People Risk.

Over recent months, APRA has ordered some of Australia’s largest banks, superannuation funds and insurers to conduct culture reviews.[1] This should provide a strong signal to all boards of the need to more closely examine an area that may not have received sufficient attention in the past.  

People Risk: The Board Governance Series – Article 2

By: Ian Doyle, Specialist Advisor – People Risk & Melissa Grundy, Senior Advisor Effective Governance, part of the HopgoodGanim Advisory Group

Yes, Boards are accountable for corporate culture

Boards are being forced to focus on the link between corporate culture and corporate scandals. The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Hayne Royal Commission) has laid the failures it has identified at the feet of poor corporate culture. Inevitably this has led to a debate about where accountability for these failed organisational cultures lies.  

Who is Governing?

People Risk (i.e. the uncertainty and potential for loss or failure caused by human behaviour or the decisions of employees) has been played out ad nauseam at the Banking Royal Commission. Overwhelmingly, the highlighted behaviour has been organisational culture allowing, in some cases encouraging, the pursuit of greed disguised as profit. Although it is acknowledged the regulators, ASIC and APRA, have not always sought to prosecute or seek remedial action consistent with general community expectations, neglect by boards with strict accountability for governing in the best interests of the organisation has not provided corporate Australia with a level of assurance that all boards are in control and protecting the interests of their shareholders and other key stakeholders.  

People Risk: The Board Governance Series – Article 1

By: Ian Doyle, Specialist Advisor – People Risk & Melissa Grundy, Senior Advisor Effective Governance, part of the HopgoodGanim Advisory Group

Why do boards get blindsided by corporate scandals? The answer may be corporate culture and People Risk…

The role of the board has not been subjected to as much discussion and scrutiny over the past 10 years as it has in 2018.  Between the corporate and prudential regulators, ASX, proxy advisors, investor representative bodies and the media there have never been more eyes critically examining the operation of boards.