One of the most basic principles of business success emphasized by those of us who have spent our careers in corporate leadership is the great management value and the absolute organizational strength and essentiality to business profitability and growth of effective corporate governance. Corporate governance is key to generating and supporting continuously strong and meaningful corporate profitability and growth in today’s brutally competitive global markets. It is fundamental to a company’s integrity throughout its human, customer, public, and financial affairs. Such effective corporate governance has long been a key focus of successful companies. With the churning human, economic, and technological forces of today’s international environment, its significance is being further emphasized. Widespread business experience is making clear that effective governance supports and strengthens competitive effectiveness, as well as favorable customer and investor visibility of companies. Effective corporate governance is a key foundation for providing the all-important business operating results of: • Empowering a companywide culture of superior performance • Providing and emphasizing consistent customer leadership throughout a company’s products and services • Maintaining a consistent focus upon and attention to the “hands-on” operating strength of the organization Moreover, a fundamental determinant of effective corporate governance is the clarity and the visibility of the responsibilities of a company’s board of directors. This requires, among other key demands, specificity of the definition and assurance of the board’s responsibilities and positive relationships between board members and the CEO. This book brings together the research, experience, and insights of Marcos E.J. Bertin and H. James Harrington, two of the most qualified and experienced leaders in the development and application of corporate governance. It provides an important resource and guide for the men and women who are committed to effective corporate governance and to the application of its principles and methods in terms that fit today’s highly demanding corporate world. —A.V. Feigenbaum, Ph.D. President and CEO General Systems Co. Inc.
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