Abstract

"Capitalism is in trouble because stewardship is failing. The world needs shareholders whose priorities and behaviors are aligned with the long-term interests of the company, and with the health of the soil in which it is being nourished. It needs boards and investors who exhibit a deeper understanding of the ingredients of success, and who have the tools of analysis by which they can advance this understanding. Shareholder value is a good measure but a bad master. No business will continue for long if it fails to meet a human need. We need investors, boards, rule-makers and civil society to combine in developing an agenda which puts stewardship and an inclusive approach at the heart of corporate life. This paper is intended to start the process of describing that agenda, with recommendations for: defined stewardship mandates for asset managers; changed independence criteria for board members; a cultural revolution in the management of behavioral risk; mandatory ethical audit and reporting; professional codes and disciplines covering the role of directors and capital market participants; changes in company law and governance codes to underpin the changes." (http://www.corporation2020.org/corporation2020/documents/Papers/2nd-Summit-Paper-Series.pdf)

Tomorrow’s Owners Must Be Good Stewards

Abstract

Navigation menu