The Integrity and Effectiveness of Board Structure is the Key to Corporate Governance of Public Companies
The Economic Information Daily article, “The Integrity and Effectiveness of Board Structure is the Key to Corporate Governance of Public Companies,” features an interview with Grace Cheng, Country Manager of Russell Reynolds Associates Greater China on how to achieve high-quality development of public companies. The article is excerpted below.
"The high-quality development of public companies largely depends on whether they have high-quality boards of directors and leadership. The integrity and effectiveness of board structure is the key to corporate governance of public companies." Grace Cheng said at the China’s Corporate Governance 50 People Forum on October 31, 2020. “Elevating the governance efficiency and strategic level of the board of directors is the key to improving corporate governance, while promoting a sustainable development mindset is a leadership imperative.”
Grace Cheng pointed out that sustainable development is a critical factor of organizations’ long-term strategies. According to the estimation of the Global Sustainable Investment Alliance, there are over $30 trillion in assets that fall under “sustainable” investment strategies. 49% of professionally managed assets in Europe adhere to sustainability guidelines. Therefore, the board of directors and executives need to pay more attention to sustainability and consider how to embed it in corporate strategies.
Grace emphasized that in the global capital market, public companies have formed a common understanding and consciousness of ESG disclosure. This is not only a question of strategy, policy or process, but also a fundamental issue related to corporate leadership and human resources.
To read the full article, click here.