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Moving Toward Excellence

A New Dawn for Corporate Governance

The Honorable Barbara Hackman Franklin
Special Issues Fall 2003, 2003 (2) 34-37
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Abstract

From the ashes of recent corporate failures, a new and better model of corporate governance is arising. A wave of creativity and activism is driven largely by board members' pride and determination to do the job well. Essentials for an effective board include qualities of character, independence, and the ability to work as a group. An important reform is the requirement for a session attended only by independent directors in conjunction with each board meeting. The audit committee is the board entity most affected by Sarbanes-Oxley and the one that constantly monitors what management does. Along with the rest of the board, the audit committee needs to anticipate, oversee, and help address potential risks to the company. Recent rules and regulations, though important, must not become a substitute for good judgment in the pursuit of business excellence.

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Special Issues: 2003 (2)
Corporate Governance: A Guide to Corporate Accountability
Vol. 2003, Issue 2
Fall 2003
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