1st Edition
Behavioral Corporate Governance in Practice New Models for Leadership and Oversight
Behavioral Corporate Governance in Practice provides readers with a comprehensive understanding of corporate governance and its challenges.
While covering the key aspects of any board’s agenda, the book also goes a step further by deconstructing behavioral dynamics and balancing both leadership and oversight in its examination of governance. The psychological aspects of decision-making and boardroom dynamics are explored, including ethics, morals, rationality, biases, and emotions. Building on these considerations, the author presents a new leadership model in reaction to the classic model of CEO narcissism; one based on strategic and empathetic leadership. A case is also made for the internally and externally balanced board, which exhibits an effective mix of behavioral dynamics as well as a strategic sensitivity to the wider societal context beyond organizational interests. Topics covered include information management, finance, accounting, risk management, fraud and corruption, purpose, risk, strategy, and the role of the external auditor as ally of the non-executive. Case studies and reflection questions throughout the book serve to enhance readers’ understanding of the nuances of these topics.
This book is essential for postgraduates and practitioners interested in corporate governance, strategy, leadership, and oversight.
Online resources for instructors include a set of slides for each chapter.
1. Introduction: Oversight Under Pressure 2. Oversight in the Boardroom: The Human Side 3. How Ownership Shapes Structures and Culture 4. Information and Decision-Making: Keys to an Accountable Board 5. Strategy, Purpose, Risk-Management: Three Sides of One Coin 6. Moral Leadership and the Balanced Board
Biography
Jan Stolker is currently Director of Leadership & Governance at the Erasmus School of Economics/EURAC and continues to advise boards and lecture internationally on governance, strategy, and risk.
“For our shared prosperity, corporate social responsibility and good governance are indispensable. This calls for a constructive yet critical dialogue between supervisors and executives—growing together with an eye for new opportunities. This book compellingly demonstrates how that can be done, and how it can be done better.”
Prof. Dr. K. (Kim) Putters, Chair of the Social and Economic Council of the Netherlands and Professor of Broad Prosperity, Tilburg University, The Netherlands
“Supervision is people’s work. Rules, codes, and compliance are, of course, essential. But insight into the organization you oversee—its psychological processes, performance, integrity, and culture—is at least as important. That applies to every organization, in every sector, large or small. How do you achieve that? Fortunately, people can learn, and behavioral governance is finally receiving the attention it deserves.”
M.J.A. (Maria) van der Hoeven, Non-Executive Director and former Minister of Education and Minister of Economic Affairs, The Netherlands
“Many non-executive directors ask how they—external and often distant—can overcome their information disadvantage and truly understand what is happening within the organizations they supervise. Jan Stolker’s book provides answers by sharing practice-tested tools and interventions that offer insight into the behavior, performance, and dilemmas of organizations.”
Prof. Patrick Reinmoeller, Professor of Strategy and Innovation, IMD Business School, Switzerland
“A must-read for all non-executive directors—and for executives as well. Rich in best practices and real-world case studies.”
Dr. F.J.G.M. (Frans) Cremers, Prominent Non-Executive Director of publicly listed companies; former CFO, VNU N.V. and Shell Group
“Everything you wanted to know about boardrooms—or, put differently, this book answers all your questions about boardroom dynamics, including the ones you didn’t know you had or didn’t dare to ask.”
Prof. Dr. G.W. (Goos) Minderman, Non-Executive Director in civil-society organizations, Associate Professor at Stellenbosch University, South Africa, and Visiting Professor at the Erasmus Governance Institute, The Netherlands
“At last, serious attention to what social transitions mean for management and supervision in companies. With solid grounding, vivid examples, and years of experience, Jan Stolker demonstrates how fundamental the shift in thinking and working must be—from managing risks to embracing societal goals and guiding one’s own internal transition.”
Prof. Dr. D.A. (Derk) Loorbach, Professor of Socio-Economic Transition Science, Erasmus University Rotterdam, The Netherlands
“Inclusive and moral leadership, combined with strategic insight, is indispensable for today’s executive and non-executive directors. This book explains why.”
Prof. Dr. A.L. (Annelien) Bredenoord, Rector Magnificus, Erasmus University Rotterdam, and Non-Executive Director, The Netherlands
