BoardMatters Quarterly, September 2012
The new governance landscape
In the early 1990s, few investors pressed companies on environmental, social or governance issues, and not many women served on corporate boards. The Clinton health care plan failed to pass, and the Sarbanes-Oxley Act of 2002 (SOX) didn’t exist.
Women are slowly making their way into the boardroom.
Now in 2012, investors increasingly are working together to press companies on governance issues, and women are slowly making their way into the boardroom. This summer, the US Supreme Court upheld the Affordable Care Act (the ACA), while SOX turned 10.
All of these developments and others have dramatically changed the corporate governance landscape and given boards a lot more to think about.
In this edition, we explore these developments and other issues facing corporate boards today.
In this issue:
- Women on the board: diversity and good governance
The case for diversity is clear, and the number of women on boards is increasing. Yet women still hold less than one-fifth of corporate board seats.
- Environmental, social and governance data
Investors and consumers have more access to ESG information than ever before. Boards need to ensure reports are clear and accurate.
- The Affordable Care Act: are companies ready to meet the requirements?
Does the audit committee have a clear understanding of how management is preparing to address compliance with the ACA and what these changes will mean to the company?
- Financial reporting and regulatory update
Lawmakers, regulators and standard setters continue to seek ways to enhance the reliability of financial reporting and to improve audit quality.