How Is Globalization Changing Corporate Boards?
Companies are increasingly encountering global opportunities and risks, but globalization has yet to permeate the boardroom itself; most boards of directors are not as geographically diverse as the companies they represent.
Interviews with nearly 30 directors highlight the geopolitical, regulatory, legal, and compliance complexities that come with expanded global operations. These governance demands are changing boards in three ways: overall composition, processes, and director skill sets.
Key findings and takeaways include:
- Top issues for global-company boards: oversight of risks (including geopolitical, legal
and regulatory) and the extended talent pipeline
- Imperatives for global-board composition, including the importance of
- Considerations for the global-board recruitment process: questions for boards and for
- Critical boardroom processes in the global context, including agenda development and
the flow of information into the boardroom
In a marketplace that is increasingly global and connected, companies must “think globally and act locally.” Directors with international experiences and sensibilities are vital for organizations’ ability to identify and assess risks — and connect with customers and talent — around the world. Read more for insights from leading global directors.