Governance news bites

Governance is often in the headlines, and the last few weeks have been no exception. Recent news related to governance includes: 

Time to think about succession

How much is or should age be a barrier to boardroom service? Tenure limits and independence are ongoing points of discussion in governance circles. But what about age? Critics argue that, while experience is invaluable, leaders well past their prime risk clinging to outdated paradigms—a shortfall that might have sidelined figures like US President Trump or former President Biden in corporate governance. For New Zealand companies and not-for-profit directors, the current discussion about age in the US may prompt consideration of whether rejuvenated leadership injects fresh perspectives while ensuring a nimble response to today’s fast-evolving challenges, striking a prudent balance between wisdom and innovation.  
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Gender diversity and company performance linked 

New research underscores a robust business case for gender diversity at the top: companies boasting a higher proportion of female executives tend to see superior share price gains, enhanced revenue growth and heftier profit margins. An extensive Credit Suisse study of over 3,000 firms spanning 56 countries reveals that stocks of companies where women constitute more than 20 per cent of senior management outperformed those with lower female representation, even within family-owned enterprises known for their above-average returns. While causality remains elusive, the findings lend credence to the view that a balanced executive team not only enriches strategic decision making but also signals a healthier corporate ethos – an appealing prospect for New Zealand company and NFP directors seeking both fiscal prudence and progressive governance. 
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Ethical practices and organisational culture: a case for board oversight

New research reveals that the insidious spread of unethical practices may often stem from a collective ‘moral disengagement’ within organisations, where dubious conduct is rationalised as necessary for corporate survival. With significant financial pressure on New Zealand firms and other organisations, attention to this is more important than ever for New Zealand boards. Drawing on extensive employee data across sectors, a study from Aston and East Anglia universities exposes how euphemistic language and diffused responsibility can make actions such as ignoring safety protocols or fudging emissions data seem not only acceptable but even beneficial. With high-profile scandals like Volkswagen and Grenfell Tower serving as stark examples, the findings serve as a warning to New Zealand company and NFP directors: a reliance on hollow codes of conduct, absent robust internal reporting, may unwittingly condone a culture of systematic ethical erosion. 
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The article was created with AI assistance.