Supervising the Board

What is the best way to advise the advisory - probably a board that controls another board? See how this system is a new model to discuss and adapted. Indonesian business culture is already one with this arrangement. Indonesia’s two-tier board system works well and could be a model for other countries.

Quoting Tanri Abeng of PT Telekomunikasi:

“The board of commissioners cannot just say, ‘I’m non-executive, so I’m going to play golf.”

What are the pros and cons of a two-board system? Does it handle the issues raised by a single board system? Is it a good idea to ward-off (or nullify a bit) board politics?

Read here for more on this.

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Corp Morality!

Did you read the text of the MBA oath being taken some months back (and even now..)? Something similar to the oath being taken by medical professionals.. Well, there is this surge of morality even in boardrooms and courts. (There was this judge getting down from the bench deciding the Ambani's case - because his daughter was legal advisor for another Ambani firm.) How much of it is cosmetic or real is something that varies from case to case - but the way it is being put forth in media is something appreciable. With Tata Tea doing a campaign on anti-corruption drives, and with Google being branded as the best place on earth to work ('Don't be evil!' is their motto) - life looks cleaner? Corporates forgot profit maximization? Corporate good or an illusion of public relation? One company recently donated a day's salary of all its employees to the Karnataka Government for relief work in floods - but no individual employee got the associated tax benefits from the company. Reason - the company was building a good relation with the labor ministry of the state and got incentives at the company level - with its employees' salary money - and no employee is directly involved! What do you say - good? Bad? Depends? Of course, this is a positive environment being built (or rebuilt?) and it will have its associated issues of implementation - but better few than none and better late than never! I am sure that the impact made in B-school blackboards and corporate boardrooms is going to be big. Recession corrections or just another passing fad?

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