Improving Governance Performance Rules （改善治理性能规则）.pdf

LEADERSHIP ACUMEN Issue 16 – January/February 2004 © Doug Macnamara Banff Executive Leadership Inc. Improving Governance Performance Rules-Based vs. Principles-Based Approaches There is a debate raging in the Governance world these days about how to improve the level of Trust in our communities regarding the Governance bodies of companies, charitable corporations, Aboriginal communities, professional associations, and more. While many debates are underway, the highest profile ones are playing out in the various global securities communities, with other organizations taking their lead from there. To some Board members, these debates might seem quite detached from our day-to-day governance responsibilities. However; understanding the different positions in this debate, and the underlying rationales should help your Board better develop policies and practices to improve your governance transparency and enhance community trust in your organization’s leadership. First and Foremost, This is About Restoring Trust A fall-out from the continued litany of transgressions of our senior community leaders exposed in the media, is the overall deterioration in trust by the average citizen towards those in the privileged position of power, influence, and community responsibility. Consider the media reports we have seen in the past months: • Lord Conrad Black’s irregular payment of bonuses to himself and key executives; • Canadian Bernie Ebbers actions of WorldCom notoriety; • Former Minister of Public Works Alfonso Gagliano’s kick-back scandal; • Chiefs and Councils embezzlement and/or leadership into bankruptcy of Aboriginal communities; • David Peterson’s infamous insistence that he was unaware of money laundering for the Russian mob by YBM Magnex International - a company that he served as a Director of the Board; • Crown Corporation Hydro One a