When I came up with the concept for BoardSuite, I recalled business people would say to me, Governance… that is only for the big companies, it won’t be around for too long….
Well we are now in 2017, and we are still facing the same issues of 10 years ago. When things go wrong, shareholders of companies are still asking the same question…
WHERE WERE THE DIRECTORS????
Good question. In 2003, some great leaders William Dimma and others had a vision that Directors needed to have a framework and the birth of Institute of Corporate Directors (ICD) comes alive. Ten years later ICD , The Conference Board of Canada, NACD have trained over 30,000 Directors in North America. While this number is great, here is something that will really surprise you:
Today, there is over 1 Million active Directors in Canada and over 10 Million in the USA.
The real problem is the lack of proper education and the prohibitive cost for the 99% of the Directors who are active and are not able to get the professional training they need.
So what does this mean in terms the whole world can understand?
We will continue to see more Bre-x, Enron, Sino-Forest, Ornge, Scouts Canada and Griffiths Energy
These issues will persist until we properly educate board of directors on their fiduciary duties and teach them how they can ensure the organizations governance and compliance practices are functioning effectively.
We need to start now to make sure the future is less about doom and gloom and more about success stories of well governed companies, overseen by educated board of directors.