Frank Kunneman
The 7 pillars of Corporate Governance
Corporate governance is the system of rules and processes that ensures that you and your colleagues can lead your organization well, efficiently and responsibly. A good corporate governance policy ensures correct alignment of the interests of all internal and external stakeholders. This is only possible when the 7 pillars of corporate governance are anchored in your organization.
Structure and rules
Organizations have to deal with internal and external rules. Internal rules are agreements with employees and stakeholders to ensure the optimal functioning of the organization. External rules are laws imposed from outside to protect stakeholders and society. Structure and rules determine the boundaries within which you can work with your organization. How do you determine and monitor these boundaries?
Integrity
Integrity is the extent to which someone behaves in accordance with a system of internal and external values and norms. It is one of the basic principles of a good corporate governance policy. Integrity is not a binary trait. Depending on the time and space you are in, you can be more or less honest. This has important consequences for your organization. When do you have integrity and how do you maintain integrity?
Responsibility
The responsibilities and liabilities of directors and supervisors and their reporting and accountability obligations are inextricably linked. Unfortunately, the duty of internal accountability is often less followed because this can put pressure on the relationships between the Board of Directors and the Supervisory Board and sometimes also internally within the Supervisory Board. How do you combine business honesty with human diplomacy?
Transparency
Transparent communication ensures that your organization appears reliable to employees and all other internal and external stakeholders. How do you ensure that everyone within your organization shares the right and just enough information at the right time? And how do you ensure that this information does not reach the wrong people? Confidentiality and transparency must remain in balance. Not evident!
Role awareness
There is a clear division of roles between the board of directors, the supervisory board and the shareholders of an organization. Each party has rights and obligations towards each other to ensure the continuity of the organization, prevent abuses and allow the organization to grow. However, supervisory directors in particular often assume more responsibilities and rights than stipulated in the articles of association. How do you deal with this?
Culture
Both the culture within your organization and the socio-cultural, economic, political and ecological environment outside your organization can have a major impact on the functioning of the Board of Directors, Supervisory Board and shareholders and therefore also on the results and continuity of your organization. Is your corporate culture in order? How do you respond to changes that impact your organization?
Stake
Good corporate governance requires that directors and supervisors have faith and trust in the organization and in each other, and that they always do their utmost to serve the organization as best as possible. Only then can the organization grow in a consistent manner. How do you ensure that directors, supervisors and shareholders continue to make optimal efforts in the interests of the organization?
Frank Kunneman
Frank Kunneman is the founder of Themis Institute for Governance and Leadership.
He is an international authority in the field of corporate governance. Frank advises (financial) institutions, governments and government entities on corporate law. He assists shareholders, boards of directors and supervisory boards in both advisory and litigation practice.
Frank regularly gives lectures and lectures and he regularly publishes books and columns
about corporate governance. He is a strategist and always thinks ten steps ahead. His view is broad and his social involvement is great.