GRC Insight: Governance, Risk, and Compliance in Context

GRC Insight is highlighting news, trends, and thought leadership in governance, risk, and compliance. We complement it with original opinion, research, and reviews. Save time, and stay on top of your profession.

Tag: Corporate Governance

News Highlight

Private Equity Critiqued for Performance and Economic Contribution at New Policy Think Tank

Private equity – hedge funds, buyout firms, venture capital – is subjected to analysis at a new policy think tank. The focus is on performance and returns in addition to distortions of the American economy. The analysis highlights the subpar returns over and during the last decade. It calls into question the valuations, leverage, and risk that are standard practices. In doing so, it also raises questions of governance for private equity investors, particularly institutions, pensions, and endowments.

News Highlight

Employee Surveillance: Crossing the Line From Trust to Coercion

Working from home has surfaced numerous risks. First security, now productivity. Increasingly, companies are using employee monitoring tools to track and measure employee activity at home. The software may increase productivity, but also may compromise employee privacy or foster anger and distrust. Shortsighted surveillance decisions may risk a hard-won corporate culture, and the governance team should pay close attention.

News Highlight

Governance: Bringing Captive Supply Chains Home

A growing clamor for supply chain diversification and returning manufacturing to the US is going to land in the laps of the c-suite and board. It is starting with outrage at the vulnerability of medical supply chains. But the obvious weaknesses of current globalization are causing a review of all supply chains and their exposure to environmental and political risk.

News Highlight

Coronavirus Ethics in the Supply Chain Are a Risk for the Company, the CEO, and the Board

“We’ll get through this together” is statement of solidarity and shared sacrifice that is on the lips of many executives – an affirmation of corporate social responsibility. Does it also include the weak link in the supply chain – developing world suppliers? Hardball demands of suppliers threaten vulnerable workers, damage business relationships, and expose the CEO and board of directors to criticism and the company to reputation risk. Governance needs to take note.

News Highlight

Twelve Activities to Focus the Board and Governance Team During Covid-19

A timely list of twelve key corporate governance issues for board members during our Covid-19 crisis. The pandemic calls for the usual director oversight plus extra vigilance for new threats and opportunities. Directors need to be well-briefed to permit quick comprehension and fast decision making.

News Highlight

California Board Diversity Mandate: The Impact so Far

Recent reports and surveys show significant changes to board of director diversity among California publicly traded corporations. This follows the state mandate that boards have at least one female director by the end of 2019. According to independent corporate governance surveys, among the larger companies 96% have at least one woman director. There have also been large increases in the number of boards with two, three, or more women directors. 94% of the new directors joined the boards as outside directors.

News Highlight

Global Supply Chains Potentially Impacted by Chinese Forced Labor of Uighur Minority

A new report claims that the global supply chain is corrupted by worker exploitation and forced labor stemming from the ongoing Chinese repression of its Uighur population. Perhaps 83 well-known brands – including Nike, Apple, and Dell – are serviced by these workers. A fresh concern for those in corporate governance and compliance concerned with reputation, third-party and supply chain risk.

News Highlight

Harvard and Yale Investigated for Failure to Report Foreign Funding

The Education Department is probing Harvard and Yale universities as part of a nationwide investigation that has identified at least $6.5 billion in undisclosed funding from foreign countries. The department claims Yale failed to report hundreds of millions of dollars during a four-year period in which it filed no reports. The compliance threshold is $250,000. The funders of concern include hostile countries China, Qatar, Russia, Saudi Arabia, and Iran and their representative companies and academic and cultural institutions.

image: los angeles
News Highlight

ESG Data – To Disclose Or Not To Disclose

Disclosure is increasingly the starting point. The trend now is to disclose ESG achievement even when the disclosure may not be fully flattering. Without the disclosure, a company may lose access to an ESG fund’s resources anyway.