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Corporate Behavior: Seasoned Corp. Secretaries View Investors as Highly Influential (Gen Y/Z: Not So Much...)

By Randi Morrison posted 10-22-2018 08:44 PM

  

This recent report from ICSA: The Governance Institute (UK): "Next Generation Governance" on its survey of 415 corporate secretaries and governance professionals - including 138 respondents in the Gen Y/Z categories (ages 18 - 35) and 138 "established practitioners" (ages 56 - 85) revealed these and other key findings on views about the future of governance and how views may vary across generations:

  • 49% of established practitioners vs. just 30% of Gen Y/Z respondents view investors as having the greatest influence relative to other external parties over companies' standards of behavior via e.g., dialogue, voting or financial consequences. Gen Y/Z respondents ranked regulators & industry bodies (e.g., accreditation or enforcement) as much more influential (44%, compared to just 26% of established practitioners that ranked regulators & industry bodies as most influential).
  • 48% of Gen Y/Z think environmental sustainability is highly likely to cause significant governance challenges, compared to just 27% of established practitioners.
  • 84% of Gen Y/Z think technological change is highly likely to cause significant governance challenges, compared to 70% of established practitioners.
  • Asked which aspects of demographic change they consider to be relevant to governance, 85% of all respondents expect trends in social attitudes to play a role. 
  • Reputational consequences of environmental sustainability (85%) trumped legislation/other political action (81%) in terms their respective perceived relevance to governance.
  • 87% of all respondents believe that overlapping or conflicting regulatory frameworks are a feature of globalization that will impact governance in the future.

See also the ICSA's release and blog, this Board Agenda article, and numerous additional benchmarking resources on our Board/Governance Practices page. This post first appeared in last week's Society Alert!

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