What the heck is a Corporate Governance Framework (CGF) anyway? It even has its own acronym for Pete’s sake. According to this acronym, not only does a corporation need governance, but that governance needs a framework. And, not only does corporate governance need a framework, but it needs interminable discussion about what constitutes this framework. Wow, I have a headache already.
What happened to working towards a greater good and being a part of something innovative and rewarding? What happened to only acting in a way that you would be proud to see published and proud to tell your mother? What happened to just being a decent person who gives, shares and empathises with others? Truth be told, I’m not so sure.
Corporate governance somewhat ties into the idea of the principal-agent problem because it is associated with executives that don’t act in the interests of the people (whether those people are shareholders, members of society or the man on the moon). I realise it’s a necessary evil, mostly for large listed businesses (that have lost the plot), but what concerns me is talk of a CGF in SMFEs (the F is for fast growing). If you refer to my previous post (Responding to the current unpleasantness), you’ll see I’m a fan of keeping it simple, especially in times of turmoil. So, my nonconstructive advice regarding CGFs is to get a grip, be brutal with anyone wavering from the greater good, and get on with the business of building a great company.