The rest should consider 10 key ways to improve their performance.
1. They should live up to their ethical codes. 2. Regulators should take steps to disqualify errant directors who are grossly negligent. 3. Companies can do more to help directors make constructive contributions. 4. There must be a clear definition of the roles of different directors. 5. Companies need to recruit a sufficiently diverse range of directors who have character, competencies and commitment. 6. Companies should ensure that they have people with the right expertise on their audit and remuneration committees. 7. Managers need to improve their succession policies to prevent a CEO staying too long. 8. Executive remuneration decisions need to be based on more informed, independent thinking. 9. Managers need to make sure they have installed a formal process for identifying and managing risk. 10. Companies should make sure they encourage whistle-blowers.
Ten issues that Asian boards should focus on
CSR Asia Weekly, Vol 2, Week 37, 13 September 2006