Deloitte calls for boards to be more agile in stakeholder engagement
KUALA LUMPUR: Chairpersons and the board of directors need to remain agile by transitioning to be more active when engaging with stakeholders, said Deloitte Malaysia.
Chief executive officer (CEO) Yee Wing Peng said with a drastically different business environment, the role of chairs would continue to evolve.
“They need to leverage on listening to various opinions of directors and management teams, including stakeholders, in order to provide firm strategic direction. Boards also need to consider how organisations could effectively shape strategies to address climate change impact,” he said in his welcoming remarks at the launch of the Malaysia Global Boardroom Programme here yesterday.
Yee noted that Malaysian boards were quick to rise to the challenge as the ultimate stewardship body of their organisation in guiding and supporting the management to steer out of crises, judging from the country’s highly commendable gross domestic product (GDP) growth for the first quarter (Q1) of 5.0 per cent, Q2 of 8.9 per cent and further accelerated to 14.2 per cent in Q3 this year.
“This is a good indicator of the strong recovery of our economy and big corporations are playing a significant role in the recovery,” he said.
Meanwhile, in its recently launched global report – Board effectiveness and the chair of the future – from the Deloitte Global Boardroom Programme, Yee noted that the report identified five key traits of a successful chair.
“This includes more chair input in organisational governance; deeper integration and responsibility to society; ensuring climate change is embedded in business strategy; effective crisis management under extreme uncertainty; and the importance of embracing digital enhancement and agility.
“Hence, together with our partner, the Institute of Corporate Directors Malaysia (ICDM), we are excited to play an important role through the Malaysia Global Boardroom Programme in shaping future chairs and boards of public entities,” said Yee.