International Leadership and Management - 2nd & 3rd Dec 06 in Bahrain 1 Corporate Governance and...

International Leadership and Management - 2nd & 3rd Dec 06 in Bahrain

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Corporate Governance and Leadership Quantitative verses Qualitative

International Leadership and Management Conference 2nd & 3rd Dec 2006 – In Bahrain

by : Saleh Hussain

Organized by: Bahrain Management Society


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AGENDA

What Leadership is about? Who is a leader? Corporate Leadership About Corporate Governance Corporate Quantitative issues Quality Governance Principles Directors’ Duties – Qualitative issues Qualitative issues – Questions Corporate Governance and Leadership - Conclusion


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What Leadership is about?

Vision Strategy Building right team Building trust, transparency & accountability Ability to make hard unpopular decisions Providing support and inspiration Celebrating and reward performance


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Who is the leader?

…’’A true leader has the confidence to stand alone, the courage to make tough decisions and the empathy to listen and understand the needs of others. He does not usually set out to be a leader, but becomes one by the quality of his actions and the integrity of his intent’’…..


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Corporate Leadership?

Shareholders Board Chairman / CEO Management / employees Other Stakeholders OR All of the above?


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About Corporate Governance

Dynamic activity. A Journey not a Destination Acting in the best interest of the corporate Acting responsibly and responsively Quantitative Versus Qualitative

“Process to discharge and be seen to be discharging responsibilities created by duties.. Marvyn King


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Governance Quantitative issues

Laws, regulation best practice code Board – one or more – advisory Composition of Board – Ex, NE, Independent Board charter, duties and responsibilities Board Committees and meetings Remuneration Monitoring and Control over the company Succession plans Risk management Performance indicators Reporting and communication


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Quality Corporate Principles

Pillars

- Fairness

- Accountability

- Responsibility

- Transparency


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Directors’ Duties – Leading Qualitative issues

Good faith Care Skill Diligence

These are human competencies…which lead to a leader being able to act independently, responsibly and responsively and act as a decent citizen…


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Duty of Good Faith

Reliance Trust Integrity Not acting in conflict of interest with company* Acting in the interest of the company only* Not seizing corporate opportunities for self interest** Corporate Sins


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Duty of Care

Serious attention to matters at hand Stewardship Transparent communication Protection of the reputation of the company

and its assets


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Duty of Skill

How to evaluate information Honest application of mind Selecting most appropriate way of conduct


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Duty of diligence

Industry Knowledge Attention to details Company relationship with stakeholders Impact of company’s business and decisions

on others


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Qualitative Issues Questions

Do I have any conflict with Corporate interest? Do I have all the facts to enable me to make a

decision? Is this a rational business decision based on facts? Is the decision in the best interest of the company? Is this communication to stakeholders transparent? Will the decision result in the company being seen

as good corporate citizen? Will it protect the assets of the company? Have I exercised intellectual honesty?


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Conclusion

Quantitative issues are mostly requirements of law and regulation. Qualitative issues are the spirit and soul of the corporate.

The qualitative issues mentioned are basis for leadership.

The Board is the major leadership of the company which enforces corporate governance good practices

The chairman is the leader of the board and CEO is the leader of management.


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The End

THANK YOU

International Leadership and Management - 2nd & 3rd Dec 06 in Bahrain 1 Corporate Governance and...

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