The ASX Corporate Governance Council in releasing the 4th Edition of the Corporate Governance Principles and Recommendationshot on the heels of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry: Final Report delivered to us by the Hon Kenneth Hayne AC QC provides a powerful mandate for all Australian boards to drive leading practice corporate governance.
Do I hear some directors saying Hayne and the ASX are not for our board – please talk to me about how they can and should work for your board. In explaining the application of its Principles, the ASX Corporate Governance Council says, “…as they reflect a contemporary view of appropriate corporate governance standards, other bodies may find them helpful in formulating their governance rules or practices…”, and the Hayne six ethical principles corroborate the ASX Principle 3 to “Instil a culture of acting lawfully, ethically and responsibly”.
Part of the mandate for boards is ensuring community and customer expectations are met and with organisational culture being clearly in the hands of boards to deliver, waiting for the community expectation debate to define what is expected is a mistake. Boards can and should impose their expectations on their organisations today. So, how do boards ensure their expectations are delivered and acted on and how do boards know when it is working? Effective Governance (eG), part of the HopgoodGanim Advisory Group, the pre-eminent provider of governance services in Australia, has the solution and the demonstrated expertise over the last 21 years working with listed entities, public and private companies, family owned businesses, not-for-profits and charities, government entities and APRA-regulated entities to develop high performance boards.
We can help boards to clearly articulate expectations to management and provide assurance that appropriate culture, acting lawfully, ethically and responsibly is driving a high performing organisation. Contact our team to find out more.