DIRECTOR ACCOUNTABILITY

Recognition of changed environment

The dynamics of the business environment have changed with increased expectations and demands of directors regarding accountability. Directors face a challenge with this increased scrutiny and are adjusting business practices and behaviour accordingly. Key stakeholders are being engaged more than ever before.

Accessibility of Information

In today’s business environment stakeholders are better informed about the companies they invest in or have contact with largely due to the increasing accessibility of information, via the internet for example. Therefore, boards should ensure that high levels of transparency are established and maintained in all their operations in response.

Follow guidelines

To enable companies to make the necessary corporate governance adaptations there are many ‘good practice’ guidelines available from various sources. Companies and directors need to also look at doing the following:

• realistically assess shareholder and community expectations
• learn from their mistakes in the past
• re-evaluate their current business practices
• follow the available guidelines
• conduct effective self evaluation
• be prepared to engage and communicate with stakeholders on an ongoing basis.