What is the Company Directors Corporate Governance Framework?

 

The Four Quadrants

The Framework is designed as a wheel that has four quadrants depicting the four key areas of focus and engagement applying to every individual director: individual, board, organisational and stakeholder. Each quadrant is divided into a number of slices representing director practices essential to the quadrant focus.

Corporate Governance Framework


*Size of segments has no relation to importance

The values encircle the practices of directors, boards, their organisations and interactions with stakeholders.

1. The individual quadrant

This quadrant reflects the practices every director brings as an individual to his or her director role – for example, the responsibilities he or she has in relation to leadership both as a director and as a chairman.

2. The board quadrant

This quadrant reflects the practices of individual directors in relation to the whole board – their commitment to the successful functioning of the board and collegiate responsibilities.

3. The organisational quadrant

This quadrant focuses on the responsibilities of directors in relation to the performance of the organisation, including those of senior executives. There is a focus on relationships and critical areas of organisational functioning that should be led by directors as individuals within the whole board.

This quadrant also identifies the director level operations that underpin peak organisational performance, including governance, risk, strategy, finance and management relations.

4. The stakeholder quadrant

This quadrant focuses on the essential interaction between directors and stakeholders. This is the outward focus directors need to take into account in carrying out directorship responsibilities. It reflects moves beyond shareholders to a broader range of stakeholders.

Applying the Company Directors Corporate Governance Framework

The Framework provides the basis for a common language regarding director practices. With increased use over time, and broad take-up, it has the capability to improve communications about governance and director matters within, and between, a range of stakeholder groups.

At Company Directors, we will be using the Framework to guide the development of support services and products for our members and other stakeholders.

We have been using the Framework to map our current offerings to identify our own support strengths and gaps so we can better provide for a more aware audience.

Common ideas for how the Framework can be applied include:

  • To assist members to make decisions about their professional development by carrying out the confidential self-assessment will provide insight into your current director practice profile.
  • Colour coding of our professional development offerings to the Framework quadrants to make it easier for you to select the most suitable professional development for your needs.
  • Capacity to assist individual directors to reflect on their areas of director strength and to consider development opportunities. With the myriad practices of directorship laid out, it is easier to review personal knowledge, attributes and skills.