Tag Archive: oversight responsibility

NACD Insight & Analysis for August 20, 2010

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Recent news has brought the topic of ethical standards in the boardroom and C-suite to the forefront. The board’s oversight responsibility is to ensure that processes are in place to promote the agreed-upon tone at the top. According to the 2010 NACD Public Company Governance Survey, nearly all respondents indicated that their management actively promotes a culture of integrity by precept and example. This can be accomplished through:

  • Standards of conduct
  • Guidebooks and manuals
  • Classroom sessions and training
  • Talks and visits, especially by senior executives

Boards must evaluate performance on many levels; this includes ethical as well as financial performance. For more guidance on the topic, please see NACD’s Director’s Handbook Series: Corporate Director’s Ethics and Compliance Handbook.