What I’m Reading – Neerali Parbhu
This week’s must-read recommendation is a book about the fundamental drivers of success.
“Managing risk, creating profitable growth, effective oversight of cash flow, effectively managing cyber security in the 21st Century.” Jonathan Mason CFInstD’s list of important director duties is strongly focussed on the practical needs of a business.
Jonathan is the chair of Vector and sits on the boards of Air New Zealand and the University of Auckland Foundation.
“I have a finance background so I put a heavy emphasis on keeping the financial of the organisation in a sound state,” Jonathan says.
That is key to protecting shareholder value, he says.
“The principles are the same for non-profit boards, but in for-profit boards there is still, in my view, a place for protecting the shareholder.”
However, directors must also identify, and understand the needs of, a wider group of stakeholders when making decisions. He says that there have been arguments, historically, to just look at shareholders but, today, directors must recognise that a sustainable business strategy includes a stakeholder strategy.
“You ignore stakeholders at your own risk to medium- and long-term shareholder value.”
Listen to the Board Matters podcast in your favourite podcast app, including:
Spotify | Apple Podcast Player | Google Podcasts | Amazon Music | iHeartRadio