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 new 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 rebuild the trust that many dubious ESG practices have shattered. 

 

We were the first to predict seismic boardroom flashpoints and downfalls and played key roles in regulatory milestones and reforms.

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.

Trust is the asset that is unseen until it is shattered.  When crisis hits, we know a thing or two about how to rebuild trust— especially in turbulent times.

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.

outrage 12.jpgIt is a number that haunts the human conscience at any time: 18,000 children die every day because of a lack of adequate food, according to James Morris, the retiring head of the U.N. food agency. But to have this tragedy happening in a time when the world has never known as many billionaires, and Wall Street is enjoying record bonuses at the top, the figure is almost too difficult to comprehend. The equivalent of a medium-size town in the U.S. or Canada disappearing. Every day. Filled with 18,000 young people. Dying. Day after day

There are many wonderful individuals and groups struggling to right this terrible wrong. They do so at great sacrifice and personal risk. They see things in Darfur and other parts of Africa that are incomprehensible in their horror and sadness. Yet the problem persists.

Here’s a thought: As noted on these pages earlier this week, Goldman Sachs announced its co-presidents received a total compensation package of $106 million between them. The company announced that it had awarded $54 million to its CEO late last year. That’s just the tip of the bonus iceberg throughout the investment industry.  As the Wall Street Journal reports:  “Overall, Wall Street will pay a record $23.9 billion in bonuses this year, according to an estimate released by New York state.”

Why doesn’t Wall Street, which is making the fattest profits in its history, set for itself the task of alleviating this problem? It takes money, for sure. But it also takes leadership and organization. It takes computers and logistics and the purchasing of large commodities. These are things Wall Street does well. Most of all, it takes the determination of intelligent men and women to do something about an intolerable problem. There would be no better way for Wall Street to re-connect with Main Street—the ultimate source of all its fees and investment income. And that’s where the real values of America are tested and set.

Wall Street could do it. It seems to be able to do anything it sets its mind to. The rest of the investment community in Canada and Europe would likely follow its lead on this, as they do with so many other things. And the vast constituency of individual investors, mutual fund holders and pension plan members who have made the investment community so wealthy would be enormously proud and grateful. It would be a demonstration of responsible capitalism at its finest from a land where stakeholder capitalism has become a driving force.

Record bonuses and billionaires. Eighteen thousand children dying every day from malnutrition. It doesn’t need to be this way. Every week this is tolerated in a world of luxury and plenty, is indeed, the Outrage of the Week.