One year ago, as the economic crisis worsened, the NACD board launched a new initiative. We call it “Leading the Way: Directors Strengthening Corporate Governance.”
This is no mere slogan: It is really happening. I saw it this past October, when more than 700 directors gathered in Washington, D.C., to exchange governance practices and boardroom knowledge at the 2009 NACD Corporate Governance Conference [visit www.nacdonline.org/conference09].
These directors and others are truly leading the way. Here’s how it works. NACD provides a tool—the “Key Agreed Principles to Strengthen Corporate Governance for U.S. Publicly Traded Companies.” This unique document distills points of governance agreement from management, directors, and shareholders, so boards can use them as a framework with confidence. (See page 51 of this issue for the full list.) We ask each board to evaluate its practices against 10 principles—and where it needs to strengthen its practices, do so—and then repeat the evaluation process every year.
The effort has been a success: Hundreds of companies—including Aetna, Home Depot, UnitedHealth, Dow Chemical, Whirlpool, and Becton Dickinson—are participating in the campaign and urging other companies to do the same; nearly 3,000 individuals have downloaded the Key Agreed Principles; NACD now provides useful tools and examples of how other boards have conducted their reviews; thought-leadership forums are taking place in our 22 chapters to explore ways to apply the principles, and shareholders and government leaders are following our campaign.
On behalf of the director community, NACD has been meeting with policymakers and members of the administration to ensure they understand what is happening in the boardroom and to raise awareness for what the director community is doing to strengthen corporate governance:
Is what we’ve done enough? Not yet. If you are not engaged in the campaign to strengthen corporate governance—coined Leading the Way—please join us as soon as possible. Check out the campaign at www.nacdonline.org.
Ken Daly
kennethdaly@nacdonline.org