Working with Investors
External pressures have forced boards to change, but they cannot relinquish control of their own destiny and that of the company. As boards come of age, the thoroughness of their processes and the depth of their discussions will give them the confidence to stand firm amid conflicting demands.
The challenge is to be responsive to external constituencies but not let them replace the collective judgment of the board. Just as the board must maintain a good relationship with the CEO while maintaining an independent viewpoint, it should also listen to employees, customers, suppliers, investors—anyone who has a stake in the company—but reach its own collective conclusions about what is right for the long-term viability ...