Directors on the audit committee will be occupied with matters related to ESG, the economy and cybersecurity.

Former Chief Justice Leo Strine weighs in on the stakeholder vs. shareholder primacy debate.

What is the ultimate purpose of the board at a time when stakeholder interests have taken on more prominence?

Both businesses and regulators must stay true to their core missions instead of being drawn to the cause of the day.

Directors believe the economy, the workforce and inflation will be the most impactful challenges as 2023 marches on. 

With ESG here to stay, the key is ensuring that good governance practices are instilled in related board discussions and strategies.

Unfortunately, boards sometimes screw up. The important thing to learn from said screw-up and ensure it doesn’t happen again.

The board should understand the company’s broader ESG goals to ensure the right approach is taken in linking pay to ESG performance.

In an unstable risk environment, directors must help their companies manage for the long term and maintain organizational agility.

Many directors are glad to see 2022 in the rearview mirror. Expected to finally deliver a reprieve from the COVID-19 pandemic, the last 12 months offered far from it. Persistent inflation, central banks implementing contractionary tightening policies, energy shortages, escalating wages and employee attrition, evolving work environments, continued supply chain challenges, geopolitical tensions and war entered boardroom conversations. 

To guide companies toward their ESG goals, audit committee members should understand their company’s strategy for climate risk and sustainability.