Setting the Scene

Abstract

There is considerable disquiet in the community which is calling into question present practices of governance. Depending upon one’s perspective, the areas of discontent are clustered around the following:

• Low ethical and professional standards leading to poor performance and a loss of value in the various organisations.

• Double standards allowing practice to differ from stated ideals.

• Failures of commercial and non-profit organisations as a result of inadequate controls or unsatisfactory checks and balances.

• Inappropriate pursuit of short-term profit at the expense of either the longer-term or other stakeholders who are seriously disadvantaged.

• High rewards, apparently out of line with performance or with an appropriate peer group.

• A lack of transparency in remuneration practice.

• Tensions and frictions that arise from the different objectives of a management team which is separated from ownership.