viewpoints
Wanted: The Global Director
By: Hugh Latif
"Corporate
governance around the world is going through major change as stakeholders exercise
pressures on companies to make boards more accountable. They are demanding greater board
accountability in approving companies’ strategic plans, supervising financial
performance, and managing environmental issues, to name just a few items in today’s
director job description.
To meet these challenges, many
companies are seeking to add board members with international experience, or so-called
"global directors."
An increasing number of
companies are looking aboard to fulfill corporate growth objectives, either through
revenue/sales growth or as a way to lower costs. Rapid advancement in technology and
communications, together with greater liquidity in international investment and lower
trade barriers, have created a smaller world but a much greater market place.
Companies that do not increase
their global vigilance may wake up to find a foreign competitor coming in from nowhere and
either making serious inroads into their existing markets or negating good opportunities
for market expansion.
In essence, any company that
contemplates marketing or producing its goods abroad, or that sees foreign competition
getting bigger and closer to home, should quickly consider strengthening its board with
one or more global directors.
Although management is
responsible for formulating and executing strategic plans, the board must act as a check
on management by asking pertinent questions:
