How to use a board to build trust
Strong company boards inspire confidence through diversity and agility.
With faith in business at an all-time low, a company’s board plays a critical role in creating trust. To build a strong board that can inspire confidence, businesses should seek diverse directors who cultivate a culture of mutual respect between senior management and shareholders. “But it shouldn’t be a love-in,” cautions Jack Cowin, Executive Chairman and Managing Director of Competitive Foods Australia Pty Ltd. “There should be creative tension.”
To reinforce that tension, boards must be able to adapt and change their composition as business risks change. They also should contribute to the business strategy — not just the operating plan. “The board’s role is to make sure the company stays relevant,” says Joanna Lau, CEO of Lau Technologies.