NACD recently announced that more than 40 companies, including several Fortune-ranked corporations, had become NACD Full Board Members, joining 1,000 current NACD Full Board Members. This was yet another example of the commitment corporate directors are making to achieve exemplary board leadership and the highest standards of corporate governance.
“NACD Full Board Members” are exactly what the name suggests: An entire corporation’s board of directors and optional C-suite executives joins NACD, embracing our mission to disseminate and encourage the best professional and ethical boardroom practices. As NACD Full Board Members, these directors and executives can take advantage of myriad resources to better understand and respond to current emerging issues and opportunities.
In today’s world, having the skills to address these issues is more crucial than ever. To that end, some of the great names in business are finding solutions with NACD. Full Board Member companies are a diverse group, including small- and mid-cap public companies and diverse private companies as well as nonprofit organizations. NACD Full Board Members range from Microsoft to PEPSICO, from McDonald’s to Lockheed Martin, and Corning, Panera Bread, The Hershey Co., Foot Locker, ConocoPhillips, Pinnacle West Capital Corp., Warnaco and IDEX Corp. are among the Fortune-ranked companies that recently joined.
What Full Board Membership means for companies:
As an NACD Full Board Member, a company demonstrates—to employees, consumers and investors—its resolute commitment to the highest governance and board leadership standards. NACD provides a wealth of resources to support this quest, as Full Board Members are entitled to exclusive programs, special events, advisory services and board evaluations. NACD custom-designs a number of benefits for board chairmen, lead directors and key committee chairs, and we provide a variety of educational and research resources tailored for individual companies.
What Full Board Membership means for investors:
NACD Full Board Membership is a corporate asset. It designates a public company as one that has taken practical action to maintain the highest standards of professionalism, and to both understand and respond to today’s emerging issues and opportunities. For both current shareholders and potential investors, the message is encouragingly clear.
NACD Full Board Membership inspires confidence among all stakeholders. Click here to learn more about Full Board Membership, including information on how to join.
Add another skill to the list of qualities every director should possess: technological literacy. Technology-specific issues can get short shrift in the boardroom, because most directors lack “expertise” in the field. However, there are constantly stories of the pervasive aspects of technology, an area no longer reserved for companies such as Google, Apple or Microsoft. Just this week, it was revealed that some smartphones track and collect user location, and there was a potential security breach at a popular online game platform.
It would be unfathomable for a director to ignore a discussion about the company’s financials, because they were not an “audit expert.” Technology should be viewed in the same manner. The topic of IT risk oversight has been covered recently in both this blog site,and in a recent NACD white paper, “Taming Information Technology Risk: A New Framework for Boards of Directors,” published in collaboration with Oliver Wyman. This white paper details four areas of IT risk a firm could be exposed to:
Service & security risk
Of the four areas mentioned, recent data has placed a spotlight on the oversight of competitive risk, or the risk of competitors getting to the market faster. According to Arbitron and Edison Research, the amount of time Americans spend consuming radio, television and the Internet increased by roughly 20 percent over the past decade, from a daily average of 6 hours and 50 minutes in 2001 to a daily average of 8 hours and 11 minutes in 2011. This dramatic increase in consumer use of technology should be considered in all strategic planning, which is consistently ranked by directors as the top boardroom priority.
Boards are also directly experiencing the pervasive quality of technology. A recent article from the Wall Street Journal noted the increased use of videoconferencing at the boardroom level. Once avoided due to slow connections and poor visuals, Cisco Systems has improved the technology in its “telepresence,” a system that simulates in-person meetings. Many high profile boards use advanced videoconferencing for meetings, including American Express Co., Wal-Mart Stores Inc. and PepsiCo Inc. While virtual meetings are unlikely to create the collaborative dialogue created by in-person meetings, their use can supplement those in-person meetings, reduce travel expenses and potentially facilitate more international diversity in the boardroom.