This book presents an innovative and integrated approach to the theory and practice of corporate governance. Central to this approach is a set of instruments that can be used by boards to offer effective strategic direction and control to their organizations. The board instruments can be readily applied to the targeted selection, review, remuneration and development of board members, and for conducting board self-evaluations.

This new approach to corporate governance is based on four guiding principles that together form the basis of an integrated approach that addresses all key aspects of corporate governance.

1;Contents;6 2;Foreword;8 3;Introduction;13 3.1;0.1 Background;14 3.2;0.2 Objectives;18 3.3;0.3 Approach;19 3.4;0.4 Definition of Terms;20 3.5;0.5 The "New Corporate Governance" Framework;22 4;Situational Dimension;26 4.1;1.1 External Business Context;28 4.1.1;1.1.1 Institutional Context;28 4.1.2;1.1.2 National Context;31 4.1.3;1.1.3 Normative Context;37 4.2;1.2 Internal Business Context;45 4.2.1;1.2.1 Ownership;46 4.2.2;1.2.2 Board Configuration;57 4.2.3;1.2.3 Organizational Complexity;64 4.2.4;1.2.4 Board Role Players;66 4.2.5;1.2.5 Degree of Internationalization;71 4.2.6;1.2.6 Mix of Board Functions;77 5;Strategic Dimension;82 5.1;2.1 Targeted and Diverse Board Team Composition;84 5.2;2.2 Critical but Constructive Culture of Trust;98 5.3;2.3 Networked Board Structure;103 5.4;2.4 Stakeholder-Oriented Board Success Measures;106 6;Integrated Board Management Dimension;114 6.1;3.1 Targeted Selection of Board Members;117 6.2;3.2 Targeted Feedback for Board Members;127 6.3;3.3 Targeted Remuneration of Board Members;137 6.4;3.4 Targeted Development of Board Members;149 6.5;3.5 Integrated Board Management Committees for Large Firms;157 7;Controlling Dimension;161 7.1;4.0 Integrated Audit & Risk Management Committee;162 7.2;4.1 Auditing Function of the Board;166 7.2.1;4.1.1 Cooperation with the External Auditors;168 7.2.2;4.1.2 Cooperation with the Internal Auditors;168 7.3;4.2 Risk Management Function of the Board;169 7.4;4.3 Communication Function of the Board;177 7.4.1;4.3.1 Internal Communication Between Board and Management;177 7.4.1.1;4.3.1.1 Objectives of Board Communication Policy;178 7.4.1.2;4.3.1.2 Board Communication Strategy;179 7.4.1.3;4.3.1.3 Board Communication Tools;181 7.4.2;4.3.2 External Communication Between Board and Stakeholders;185 7.5;4.4 Review of Board Success;188 7.5.1;4.4.1 Controlling Function of the Board;189 7.5.2;4.4.2 Self- and External Evaluation of the Board;192 7.5.2.1;4.4.2.1 Goals of Board Review;193 7.5.2.2;4.4.2.2 Instruments for Self- and External Review of Boards;194 7.5.2.3;4.4.2.3 Procedure for Self- and External Evaluation of Boards;205 8;Conclusions;210 8.1;5.1 Implications for Practice;211 8.2;5.2 Implications for Teaching;212 8.3;5.3 Implications for Research;212 9;References;215 10;Index;229 11;ABOUT THE AUTHOR;232