Design corporate governance, that is both – company- and stakeholder-friendly.
The yardstick for successful corporate management and monitoring has suddenly and clearly increased.
The new complexity of corporate management still challenges entrepreneurs, CEOs and supervisory boards. Some are still struggling with the digitalization challenge and feel their powerlessness when it comes to cybersecurity – and the next century’s issues of climate change and sustainability are already high on the agenda (not to mention Covid-19 and the economic wars).
How can we shape stakeholder-friendly corporate governance?
If you want to make good entrepreneurial decisions, you need to know your ecosystem and the expectations and demands of your stakeholders (very) well and to incorporate them into the decision-making processes and your actions.
Those, who fail to do so, will sooner or later, but at least inevitably, find themselves in a position of defense and justification. You run the risk of being punished – individually or collectively – by the stakeholders.
Nobody has the magic formula!
It is therefore more than time to look and concentrate less on the past and formalisms. Instead, we should courageously look ahead. I strongly believe: we need more dialogue and open exchange of ideas; a higher diversity – strategically as well in daily operation. Because nobody has the magic formula.
And because corporate governance in fact (and in real life) is about stakeholder-focused decision-making processes and above all: communication.
Have a good start into a great, new week!