New eBook from Michael Volkov
Corporate Boards are Due for a Rude Awakening
The compliance revolution has had a dramatic impact on important actors in the compliance arena – the rise of chief compliance officers, the redefinition and elevation of chief ethics officers, and a dramatic increase in compliance-related functions and responsibilities.
Yet, we have failed to see any significant changes where it matters most – at the corporate board level. Every company should have a former or existing compliance professional serving on its board. In the absence of one or more compliance professionals appointed to a corporate board, it is imperative that corporate boards devote more time and attention to learning how to monitor and effectively supervise an effective ethics and compliance program.
Corporate board members devote significant time to financial oversight and strategy, while ignoring steps needed to protect and promote its most important intangible asset – its culture and reputation. Corporate board members would rather discuss strategy issues and ignore the important questions surrounding its culture.
Corporate boards are due for a rude awakening – compliance expectations and competing stakeholders are demanding increased and more effective oversight. Directors need to learn how to carry out these important functions. A chief compliance officer has a responsibility to educate and train board members on how to manage its corporate culture and ensure the effective operation of compliance controls.
This book is a contribution to increasing demand for greater corporate board accountability and responsibility. Board members need to understand the new realities surrounding corporate governance and embrace a new era of responsibility. Corporate boards do not have a strong record of promoting change, but hopefully new leadership inside corporate boardrooms will understand and accept this new era of responsibility.
— Michael Volkov