Amy Rojik is Director and Founder of the BDO Center for Corporate Governance. This post is based on her BDO memorandum.
Introduction
As an uncertain business environment persists, board directors face expanding roles and responsibilities in applying the lessons learned over the past 18 months while continuing to navigate new obstacles. In our last Board Pulse Survey, directors indicated they were challenged by an array of financial, operational and regulatory pressures as the wide range of stakeholders expanded their expectations of the board’s role. In addition to those issues, board members face new regulatory changes, issues related to globalization and digital acceleration, and the rise of environmental, social and governance (ESG) factors being linked to company performance. All of these elements will play a pivotal role as boards look to thrive in today’s shifting corporate climate.
While keeping these challenges top of mind, boards are optimistic and taking active steps toward growth. Our 2021 BDO Fall Board Pulse Survey explores the evolving corporate strategies for public company boards of directors, including how they plan to pursue growth and increase transparency around strategic shifts.
Key Findings
- Coming out of the 2021 proxy season, engagement of shareholders and investors is priority #1.
- M&A is the top-ranked corporate strategy.
- Cybersecurity and data privacy continue to be significant governance issues for all companies.
- Risk of supply chain disruption challenges boards to tackle sourcing diversification head-on.
- Labor shortages and scrutiny around board composition encourage more thoughtful talent recruitment and refreshment processes.
- ESG issues remain high on boards’ priority lists, as directors explore options on how best to comply with changing requirements and communicate their efforts publicly.
- With annual reporting approaching, boards anticipate challenges around increasing disclosures and risks.