Wanted a Chief Governance Officer…With Teeth
August 28, 2008
Th 2008 REPORT TO THE PRESIDENT CORPORATE FRAUD TASK FORCE contains the following statement:
“Since July 2002, the Department of Justice has obtained nearly 1,300 corporate fraud convictions. These figures include convictions of more than 200 chief executive officers and corporate presidents, more than 120 corporate vice presidents, and more than 50 chief financial officers.”
Not a favorable assessment of the state of Corporate Governance practices. While there may have been some advances in corporate transparency, seems there is more work to be done.
The key is not the regulations, laws and other requirements placed on organizations. Commentators have been repeatedly saying that “you can’t legislate compliance”. The problem is in the daily internal operations that take place. Enter the Chief Governance Officer (CGO).
Simply put the role of the CGO is –
As the governance officer, I see my role as a planner, educator and implementor. As a planner, together with my team of five, we are tasked to draw the corporate governance landscape for the company. As an educator, we are mandated to communicate and educate our co-employees and managers on the why, what and how of corporate governance. As an implementor, we will ensure together with Legal, Internal Audit and HR that our policies and processes are followed.An Interview with Atty. Rene G. Bañez, Chief Governance Officer, Philippine Long Distance Telephone Co. Managing Corporate Governance in Asia Volume 131 September 2005
More substantive job descriptions may be accessed –
This site has many examples of job descriptions. While on the site download “The End of Law The Rise of Values”
If you asked a company leader the purpose of the organization’s values, he or she would probably tell you that they dictate a standard of workplace conduct that will benefit the company and the internal and external communities it serves. At their essence, most organizational values relate to some core behavioral principles: tell the truth, take complaints seriously, follow problems through, treat customers and employees fairly, and watch what you say and how you say it. These are simple concepts, but somewhere along the way, companies seem to be getting off track when it comes to integrating the values into the workplace culture. There are too many scandals and incidences of outrageous conduct to think otherwise.
A must read that sets the tone for the Chief Governance Officer’s philosophical underpinnings.
Some essential aspects of this position –
- It must report directly to the CEO and the Board and set the Board agenda on governance matters
- The position must not be an adjunct to an existing officer, Chief Counsel, CFO, etc.
- It must be a function that has an influence on all corporate departments
- This is a serious position and not merely for window dressing
- The corporate code of ethics and all matters of ethics and integrity are part of the CGO’s role
- The person filling this position must have or develop a reputation of uncompromising integrity
In sum this position has clout and TEETH. A good article on the CGO is “The Chief Governance Officer: To Have or Have Not?”
This position adds to the company’s public perception that it is serious about doing business in a manner that surpasses mere compliance with legal and regulatory requirements.
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Do Tech Companies Give Good IR Web? (part 2)
August 28, 2008
After subjecting Microsoft to my critical and highly subjective review of how tech companies get investors to their investor relations pages, I thought it would be fair to look at how Apple does it. After all, Apple is a company that is known for its design flair and ease of use. My expectations were high.
When I visited Apple’s home page, I searched high and low for something that typically would lead me to the investor relations page, either a link or tab that was labeled “About Us” or “Our Company” or even “Investor Relations”. I found nothing - nada - zilch - that looked like where I wanted to go. Finally, down at the bottom of the page, in tiny print I found “Media Info”. Clicking on that lead me to a page of press info with a small box labeled “Media Resources” where Investor Information is number four in the list. Clicking on that got me where I wanted to go.
Needless to say, my expectations about Apple were not met. This was a disappointment for me as I am a fan of Apple’s products - this post is being written on a Mac and between my kids and I we have more ipods in my house than I care to think about. So how do I score them on my completely arbitrary scoring system? I give them a 7. While it only took two clicks to get where I wanted to go, the treasure hunt factor was way too high for a company of Apple’s stature. Further, Investor relations is not a media category, and the printing for the links was tiny.
Further investigation of the web page revealed two other ways to get to the investor relations page. The first was to navigate to the site map and find the “Investors” page. Personally, I try to avoid site maps whenever possible as they usually involve extended hunting for what you want. This wasn’t my first choice and I don’t give Apple much credit for it. The second method was more innovative. At the top of Apple’s home page there is a small search box, similar to the search box that is built into their current operating system. By the time you type in the first three letters of investor relations, the link for the appropriate page pops up. This is cool, if only you know to do it. it may be the wave of the future, but most of us are conditioned to use links and tabs at this point.
So what does all of this tell investors about Apple? First, if you never found Apple investor information it would be OK with them. By placing investor relations as a subset of media, it also tells you that Apple wants and expects to control the message to investors, something they can do with the media. Alas, this almost never works, although it doesn’t keep companies from trying.
Corporate Brand Mind Survey from Harvard University
August 27, 2008
Harvard University’s Department of Psychology is conducting some interesting research related to corporate brand reputations, and you can participate by taking a 10-minute survey on the Mind Survey website.
The tests are broken down into 19 categories related to emotional triggers, and each test references the same collection of corporate brands .
The 19 surveys included in the Mind Survey project focus on: Read more
The Marriott Brand Shows How Your Blog Can Be Successful
August 27, 2008
Mr. Bill Marriott of the Marriott Hotels takes time out of his busy schedule on a regular basis to write on his blog. As a busy executive, you would think that he has very little time to do such things and that he would also have a staff to handle such administrative functions. However, what Mr. Marriott is doing and what other business leaders should mimic is Mr. Marriott’s committment to quality, his committment to excellence and his unfailing committment to the core of his business conglomeration - - the customers.
Blogs have quickly become a marketing magnet, enticing and attracting customers who otherwise may not have considered a product or service showcased in a blog. Companies who blog on a frequent basis and blogs that speak directly to the customer are more likely to be successful than those blogs that simply exist. Customers want to know that you have their needs and considerations in mind. They want to feel and see genuine customer service. Blogs contribute to this and fill this need by offering a connection between the company and its customer base. Customers (and competitors!) read blogs to see what the company is doing, what their future plans are and, again, to connect with the company on any level. Customers generally want to feel good about spending their money with you.
Maintaining blogs can help a company’s success rate, no matter how big or small the company is. Blogs are designed in nature to be a voice or a personality for the company, therefore establishing solid connections with the blogging audience is key in making the blog as successful as possible. Bill Marriott maintains a very connecting blog where he also allows others to comment on the blog and he even responds to those comments on occasion. While yes it is true that most executives are very busy individuals, what I believe is important here is the ability for an executive to connect directly with his readers and make a significant impact with his business. Let’s look at some elements of the blog to make that assessment:
- Mr. Marriott writes and contributes to his blog on a frequent basis. Doing this is one way to ramp up your blog’s readership and show your level of concern for your readers. Giving them fresh, timely content on a regular basis makes readers come back for more.
- The blog itself is easily navigable and a clean read. The eye doesn’t have to travel too hard or fight to find a comfortable reading level. Be sure that your business blog is easy to read as well so as to keep readers coming back for more. If there is any difficulty or not enough white space, you could possibly lose readers.
- Lots of images and photos of Bill himself and of his numerous hotel locations. Ideal for businesses that are showcasing a product (like in this case, hotels) or something that you want customers to “see.” This helps customers make decisions quicker and are more inclined to add services or features on to their orders.
What is your blog doing to attract customers? How can you make your business blog more attractive to customers and invite them to comment?
Branding in Social Media vs. Traditional Media
August 25, 2008
Integrating a social media plan into your branding strategy has moved from being an option to becoming a necessity for survival in today’s fast moving marketplace. Not too long ago, the thought of adding a viral component to a marketing campaign was a nice add on but hardly a requirement for success. Today, the companies that are going to survive and thrive are the companies that understand the importance of social media and experiment with it to find the best ways to leverage its reach and power in order to drive returns.
With that shift in strategic direction in mind, consider the ways that social media differs from traditional media described below. Read more
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