How the Board sets the company’s direction, oversees strategy and protects long-term value – and where its role ends and management’s begins.
In this section
5.1.1 | Company’s purpose, vision, mission and values | 68 |
5.1.2 | Corporate culture and tone at the top | 73 |
5.1.3 | The strategy cycle: building, updating, implementing | 76 |
5.1.4 | Integrating sustainability into company strategy, its oversight, sustainability reporting | 83 |
5.1.5 | Capital structure and dividend policy | 88 |
5.1.6 | Mergers, acquisitions and major transactions | 92 |
5.1.7 | Budget and KPIs for the company and CEO, performance monitoring and evaluation | 97 |
- 5.1.1 Company’s purpose, vision, mission and values
Before building the strategy, the Board should discuss with the shareholders what the purpose of the company is, and then set the vision, mission and…
- 5.1.2 Corporate culture and tone at the top
Corporate culture is the pattern of behaviours that people in the organisation actually follow when no one is watching – how decisions are made, how bad…
- 5.1.3 The strategy cycle: building, updating, implementing
Strategy is the way in which the company uses its mission to achieve its vision, based on its values and on a clear understanding of the company’s…
- 5.1.4 Integrating sustainability into company strategy, its oversight, sustainability reporting
Sustainability has moved from a peripheral corporate-responsibility function to a core input into strategy. Climate-related risk, resource dependency…
- 5.1.5 Capital structure and dividend policy
How a company finances itself – the mix of debt and equity it carries – and how it returns capital to shareholders are not routine treasury matters.…
- 5.1.6 Mergers, acquisitions and major transactions
Few decisions test a Board as severely as a merger, an acquisition, a disposal of a core business or another transformational transaction. The amounts at…
- 5.1.7 Budget and KPIs for the company and CEO, performance monitoring and evaluation
When targets are defined, the Board must set specific KPIs or other agreed performance measures for the company and for the CEO, monitor regularly (at…
