The Business Ethics Twin-Track: Combining Controls and Culture to Minimise Reputational Risk

Chapter FiveThe governance dimension

EFFECTIVE GOVERNANCE: FOURTH WORKSHOP

Opening

Introduction

I arrive early for this, the fourth workshop to be held as part of Stronach's ethics project, in order to prepare the room and the materials. We are going to review aspects of governance today. Rachel Gordon, the Chairman, called me a few days ago to check that all the preparations were proceeding well and to say how much everyone was looking forward to this session. So, I want to make sure that everything is ready.

After a short time, the four team members start to arrive themselves – they are also early. Everyone seems keen today!

Update

As we are all exchanging greetings and pouring coffee John Holt, the CEO, walks over to me and says that he has a piece of news that I might find interesting. Following the last workshop, he got together with the Group Finance Director, Malcolm Mainwaring, to review the proposals coming out of the Group's strategic review. Apparently, neither John nor Malcolm had been entirely convinced by any of the three proposals on the table for possible acquisitions. Their doubts and concerns had been crystallised by the discussions in the last two workshops – latterly on reputational risk and, before that, on bribery and corruption. They both felt that the proposals in Argentina and Bulgaria carried too much risk given the current circumstances in those two countries whilst the third, the take-over of a British rival, was possible but it does not sit ...