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In Focus: Corporate Governance in the New Normal

This unprecedented time has seen immense disruption across all facets of our global community, including corporate boardrooms. The best way for executives to navigate the evolving landscape is to consult with an attorney experienced in corporate governance.

As C-suite executives, officers, and directors anticipate the new normal, sound governance must broaden its scope to encompass social responsibility. Let’s take a look at a key corporate governance concern in the post-pandemic world: how corporations interact with communities and societies they serve.

The New Normal in Corporate Governance: Social Justice

The rise of the Black Lives Matter movement has prompted a paradigm shift in the national conversation around social and racial justice. Moreover, the widespread social disruptions of 2020 have impacted corporate culture as business leaders look to diversify their leadership teams. 

Beyond making pledges, a recent study shows that 80 percent of executives surveyed plan to increase board diversity. The objective is twofold: create more opportunities for individuals and create more effective and dynamic companies. 

Achieving these objectives will ultimately require corporations to leverage technology to drive transparency, as well as to have proper legal representation.

The Impact of Digitization on Corporate Boardrooms

The forced digitization of thousands of workplaces has fundamentally changed the relationship between corporate leaders and their organizations as boardrooms have become more integrated with their companies. 

It may seem counterintuitive, but physical separation has actually led to greater connectivity and transparency. More importantly, the pandemic has accelerated a move toward greater empathy: knowing that we are all in this together and the only way out is to cooperate, the viewpoint of all employees on how to move an organization forward must be considered. 

That enhanced connectivity is not only manifested within organizations but also in the way they operate on the global stage. 

In sum, the pandemic, its economic impacts, and the ongoing social and racial awakening is driving corporate leaders to consider how to positively impact customers, employees, partners, and society. By diversifying within, and standing up for racial justice in the communities they serve, companies will be able to prosper and help to restore unity to society writ-large. 

The Takeaway

The pandemic and renewed calls for social justice have altered the playing field for corporations locally, nationally, and abroad. As executives plan and pledge to increase board diversity within their organizations, they can increase social and justice in the workplace and the communities they serve. 

Ultimately, it is crucial for business leaders to consider these corporate governance concerns, and design solutions that can be synthesized into the fabric of their organizations. By working with an experienced attorney, your business will be better equipped to navigate the new normal and embrace your corporate social responsibilities.