There is no substitute for a culture of integrity in organizations. Compliance alone with the law is not enough. History shows that those who make a practice of skating close to the edge always wind up going over the line. A higher bar of ethics performance is necessary. That bar needs to be set and monitored in the boardroom.  ~J. Richard Finlay writing in The Globe and Mail.

Sound governance is not some abstract ideal or utopian pipe dream. Nor does it occur by accident or through sudden outbreaks of altruism. It happens when leaders lead with integrity, when directors actually direct and when stakeholders demand the highest level of ethics and accountability.  ~ J. Richard Finlay in testimony before the Standing Committee on Banking, Commerce and the Economy, Senate of Canada.

The Finlay Centre for Corporate & Public Governance is the longest continuously cited voice on modern governance standards. Our work over the course of four decades helped to build the paradigm of ethics and accountability by which many corporations and public institutions are judged today.

The Finlay Centre was founded by J. Richard Finlay, one of the world’s most prescient voices for sound boardroom practices, sanity in CEO pay and the ethical responsibilities of trusted leaders. He coined the term stakeholder capitalism in the 1980s.

We pioneered the attributes of environmental responsibility, social purposefulness and successful governance decades before the arrival of ESG. Today we are trying to sort out the mess that many dubious ESG practices are causing.


We were the first to predict seismic boardroom flashpoints and downfalls, played key parts in regulatory milestones and warned about game changing upheavals in capital markets.

We’re working to advance the agenda of the new boardroom and public institution of today: diversity at the table; ethics that shine through a culture of integrity; the next chapter in stakeholder capitalism; and leadership that stands as an unrelenting champion for all stakeholders.

Our landmark work in creating what we called a culture of integrity and the ethical practices of trusted organizations has been praised, recognized and replicated around the world.


Our rich institutional memory, combined with a record of innovative thinking for tomorrow’s challenges, provide umatached resources to corporate and public sector players.

We’re still one of the world’s most recognized voices on CEO pay and the role of boards as compensation credibility gatekeepers. Somebody has to be.

A G8 Muskoka Legacy of Profligate Spending and a Proliferation of Garbage Cans

Far from setting the right example as the host country, Canada’s lavish G8 spending shows the Harper government knows neither restraint nor sound judgment as it asks other nations to cut their deficits.

It is a time when, we are told, when most nations of the world are, or should be, focusing like a laser on curbing the growth of government debt and stemming excessive expenditures.  It is ironic then that when the leaders of the G8 nations descend upon Muskoka this week for their summit in the heart of Canada’s cottage country, they are unlikely to see the thick blanket of public spending hypocrisy that covers a land of pristine rocks and lakes.  It is not the only anomaly that makes Muskoka a strangely disconnected place for a G8 summit.

For reasons that defy logic, but evidently not crass political expediency, some $50 million has been doled out to communities and local councils throughout the region in the name of the G8 summit.  Canada’s Conservative government, led by Stephen Harper, calls it the G8 legacy infrastructure fund. Under this plan, towns and villages, some of which are an hour or more from the site of the G8 meeting, have been given vast sums to spend on public washrooms, new roofs, elaborate town welcome signs built out of stone, and garbage cans — lots and lots of garbage cans.  The larger symbolism of associating litter bins with the G8 meeting does not seem to be something that occurred to the Harper government or to the local communities that sprouted all those garbage cans.

One town was given $1.5 million to improve its main street after spending close to that amount five years ago — on its main street.  It has some very fancy designs embedded into the pavement and brand new garbage cans — lots and lots of garbage cans.  In fact, there appears to have been a peculiar outbreak of fear throughout Muskoka that has prompted the need for a sudden increase in litter bins, which can be seen lined up like sentries every twenty feet or so on the main streets of several of the region’s hamlets.

Another town had so much money thrown its way that it was unable to fully spend its allotted $1.2 million by the deadline.  It did manage to buy more garbage cans though — lots and lots of garbage cans — as part of what it calls its G8 legacy project.  Of course, no G8 leader will ever set foot in any of these outlying communities, much less make use of the public washrooms, the newly shingled arena or even a single garbage can.

Few in Muskoka, where billionaires and American film stars make their summer homes and luminaries like conservative commentator David Frum can been seen dockside debating against a quickly melting ice cream cone, seem terribly bothered by this display of largesse.  In fact, Muskoka could be a location that other politicians come to for tax and spending lessons.  Local taxes have soared by more than fifty percent over the past four years.  Water rates have risen by at least that.  Some councils have racked up a level of debt in the same period that is triple their total annual operating and capital budgets.  The head of the regional government has been in office longer than North Korea’s Kim Il Sung.  Like Mr. Kim, he is not elected by the people.  He is appointed by other members of the regional government.  There is little appetite for change.  In Muskoka, it is not uncommon to find local elected representatives holding office for a quarter century. Most local communities don’t have any effective ratepayers advocacy and the vast majority of citizens don’t bother to vote in municipal elections.  Local councils frequently hold meetings behind closed doors.

Muskoka is known for many things — family cottages, dazzling lakes, the haunting late night call of the loon — but leading the way in transparency and accountability, the twin forces that are transforming governance around the world, does not appear to be among them. That alone makes the location for the G8 rather peculiar.  Nor does the idea that fiscal restraint and deficit reduction, acknowledged by governments everywhere as a key to economic survival, appear to be something the Harper government thought should be applied to the G8 meeting in Muskoka, even though his government is running a $50 billion dollar deficit.  It should be borne in mind that the security and logistics costs have to be duplicated in Toronto for the G20 meeting that is to follow.  Estimates of more than a billion dollars have been given by government officials as the price tag for G8 and G20 security alone.  Smart use of scarce resources is a challenge facing all government as they enter a new era of fiscal constraints.  With all its duplication and unnecessary spending, the handling of the G8/G20 by their host country under Stephen Harper seems not to be the model to follow.

A $50 million spending spree may be small compared with the other costs of the summits.  But it is emblematic of the wrong signal being sent at just the wrong time.  If Canada wants other nations to commit to cutting deficit spending, it cannot put itself in the position of mindlessly throwing money around when the notion strikes it.

Whatever else may be said about it, the G8 in Muskoka will be remembered for its record costs and for the easy slush fund it created for towns and villages when the focus of the world is on exactly the opposite direction in public spending.  And it will be remembered for all those garbage cans — lots and lots of garbage cans, which, to many, may be an apt symbol after all.

Outrage of the Week: A Plethora of Smaller than Life Leaders of the G8

The recent G8 summit provided another revealing glimpse into how bankrupt the world’s top democratic heads are at addressing its most vexing problems.

When the leaders of the G8 nations descended on Japan this week for their annual gathering, their private jets left a carbon footprint larger than the Grand Canyon. With that as a prelude to their discussions, they decided that greenhouse gases could be reduced significantly -by 2050. Later, over a dinner which included corn-stuffed caviar, winter lily bulb and summer savoury, hairy crab “Kegani” bisque soup, roasted lamb with cepes and black truffle, and exquisite offerings from 19 other dishes, the group digested the growing world food shortage and the soaring prices that have caused riots from Port-au-Prince to Cairo. Yet the gathering produced only re-hashed statements on this global epidemic and no meaningful plans on how to combat it. The spiraling price of oil and looming economic turmoil failed to prompt concrete action as well. Disquieting forces set the world further adrift while its management dine on the fine repast of complaceny and self-satisfaction.

We have often asked on these pages what crisis has the G7 or G8 ever anticipated or adequately addressed? Where are the Marshall Plans that the scale of today’s global disasters call out for? Where is the vision a troubled world needs? Where is the hope that the hungry children of Africa, and so many now cowering in refugee camps across a continent caught in the grip of genocide, to come from? Far from displaying the foresight of real leaders, they give the impression of a bunch of people who even have trouble getting the picture right when looking at it in a rear-view mirror. To have the eyes of the world upon them -at their own behest- at this time of crisis on so many fronts and to engage in such a shameful spectacle of hypocrisy shows how out of touch this group is. What is it about the world’s democracies that its collective leadership appears so irrelevant and lacking in an authentic and inspiring voice? Why are we faced with a plethora of smaller than life figures who seem unworthy of the term leader?

Ultimately, it comes down to what stakeholders are willing to tolerate and how much folly, stupidity and self-aggrandizement they think is too much before meaningful change is produced.

To that end, the recent G8 summit provided another revealing glimpse into how bankrupt the world’s top democratic heads are at addressing its most vexing problems. It is our choice for the Outrage of the Week.

With this posting the Outrage will take a much-needed break for a few weeks, while reserving the right to return in the event that the usual suspects act up too much in its absence.