Sandra J. Sucher and Shalene Gupta write about trust as an essential element of a company’s brand and risk management strategy, with Boeing, Volkswagen, and Facebook as examples of corporations that are failing to maintain the trust of customers, regulators, and investors. Trust, as defined by organizational scholars, is our willingness to be vulnerable to…
Category: corporate governance
Nasdaq Launches Center for Corporate Governance, First Report Highlights Focus on Stakeholders Beyond Shareholders
We are very skeptical of this new initiative — to have its very first report grounded in the work of the ultimate defender of corporate insiders but couched in the language of stakeholders looks like just another sneaky entrenchment ploy. We hope that the emphasis on sustainability is sincere, but we need to be persuaded….
FTC’s $5 Billion Fine Alone Won’t Get Facebook Out of Crosshairs – WSJ
“Five billion is literally the cost of doing business,” said Marc Rotenberg, head of the Electronic Privacy Information Center, which has long pushed for greater regulatory scrutiny of Facebook’s privacy practices.“If they get some serious new privacy obligations, that would be interesting. If they got governance reform, that would be interesting. What would not be…
Silicon Valley eyes plan to reward long term shareholders | Financial Times
A new stock exchange wants to encourage long-term investors with long-term investment horizons by giving them increased voting power as they continue to hold the stock. We saw how this can go off the rails back in the 1980’s when a company rescinded the additional voting power just before Gamco’s shares were about to qualify….
Applying Commonsense Principles 2.0 | Ethical Boardroom
An update on the Commonsense Principles for corporate governance, first published in 2017: The Commonsense Principles 2.0 built on the strong foundation of the 2016 Principles to reflect the evolving conversation and drive forward a more developed understanding of, and agreement on, the key tenants of corporate governance that support long-term value for all shareholders. Notably,…
Retail Surprises and Summer Movies – Motley Fool Money — The Motley Fool
Thanks as always to Motley Fool Money for inviting VEA Vice Chair Nell Minow on as a guest to discuss corporate governance (and movies). Retail Surprises and Summer MoviesTarget hits the mark. Best Buy surprises. Intuit rises. And Coca-Cola gets a refresh. Analysts Andy Cross and Jason Moser discuss those stories and discuss earnings from…
VEA Vice Chair Nell Minow on Boeing: ‘There Is Something Wrong with the Board’
“By virtue of the fact that this company has ended up where it is, there is something wrong with the board, says corporate governance expert Nell Minow, Vice Chair of ValueEdge Advisors. “At the end of the day, the buck literally stops with them.”….A more detailed look reveals some concerning details around Boeing’s board composition….
Can the Facebook CEO Also Oversee Privacy Compliance? NO.
Let’s be clear about this: the CEO and the compliance officer should not be the same person, especially when the government has had to come back for a second time after the terms of the first settlement agreement were almost immediately violated. The Federal Trade Commission is negotiating a settlement with Facebook that would create…
Has La Croix Lost Its Fizz?
National Beverage, producer of La Croix flavored fizzy water, has been criticized for the tone and substance of its recent filings. On Forbes, Jim Collins calls CEO Nick Caporella’s statement “bizarre” and points out the contradictions in its explanation for reduced revenues: La Croix sales are falling due to litigation, but that litigation will not…
