The Institute of Directors (IoD) has released its Top Five Issues for Directors in 2020.
The institute says that an increasingly complex governance landscape means there is an array of issues for directors to deal with. But IoD chief executive Kirsten Patterson says it is vital that boards pay particular attention to five areas: climate action, purpose, data and privacy, reputation and trust, and board leadership/stewardship.
“Whether they are in the private sector, state-sector or not-for-profit, boards need to ensure their organisations are focused on and equipped to deal with these issues. And the IoD will be doing all we can to help provide directors with what they need in terms of thinking, resources and tools,” says Patterson in a media release.
“Directors make decisions that can change the world – today and for the future — our future. These decisions impact organisations, communities and Aotearoa. The World Bank ranks New Zealand as the best out of 190 economies for ease of doing business. Transparency International has consistently ranked New Zealand highly for low levels of corruption. Our country is regarded as a beautiful and desirable place to visit. Our reputation internationally is important and how we govern our organisations is key. I believe that good governance is more important now than ever.
“As we set ourselves up at the starting line of 2020, it’s a good time for directors to reflect on where we will put our efforts, what we will achieve and what our goals are. While all aspects of good governance must come into play, we urge directors to prioritise these five issues.
- Climate action is not optional — all boards will need to step up.
- Purpose beyond profit will be key to remaining competitive.
- Cyber-attacks and data breaches have become a matter of ‘when’ not ‘if’ they happen.
- Boards can expect increased attention on matters affecting their organisation’s reputation and must be prepared to be held to account.
- To effectively lead, boards need to balance time on compliance with time on important drivers including strategy and innovation.