What is the role of boards in corporate governance? How should they be structured in order to maximize value creation? This 2007 book looks at the role of boards in a variety of different countries and contexts, from small and medium-sized enterprises to large corporations. It explores the working style of boards and how they can best achieve their task expectations. Board effectiveness and value creation are shown to be the results of interactions between owners, managers, board members and other actors. Board behaviour is thus seen to be a result of strategizing, norms, board leadership, and the decision-making culture within the boardroom. Combining value creation, behavioural and ethical approaches to the study of boards, this work offers a systematic framework which will be of value to graduate students and researchers in the field of corporate social responsibility and business ethics.
• Presents a coherent and unifying framework for explaining and understanding boards • Communicates actionable research and knowledge about boards, governance and value creation • Features a variety of in-depth case studies
Foreword; 1. Understanding boards and governance; 2. Internal and external actors: defining corporate governance; 3. Board task expectations: contributions from theory; 4. The board members; 5. Context and resources; 6. Interactions: trust, power and strategizing; 7. Structures and codes, norms and leadership; 8. Decision-making: the boardroom culture; 9. Actual board task performance; 10. The value creating board; 11. An ABC of boards; Appendix; Endnotes; Index; References.
'This book successfully combines the value creation and the behavioural and ethical approaches to the study of boards, offering a systemic framework which contributes to both the practitioner and the academic debate. I'm especially pleased to see that the subject of corporate governance is deployed with reference to all classes of firms and to different stages of their life, whereas most literature is still concentrated on large listed companies. The book suggests a wide range of different views and interpretations of the roles of boards and governance in our society.' Giuseppe Airoldi, Bocconi University, Italy
'At last, a book about the human side of corporate governance. This is a refreshing and intellectually invigorating read for anyone who is serious about understanding the vital role of boards and governance in value creation.' Andrew Crane, George R. Gardiner Professor of Business Ethics, York University
'Morten Huse presents us with a major work in the area of corporate governance, which is the result of not only an in-depth research programme conducted by one of the top-class scholars in the field, but also of twenty years' experience studying boards throughout Europe. Huse provides us with a unique synthesis. This work reflects the kind of wisdom that is acquired only through years of interaction with directors on a both professional and personal level. There is no doubt that it will become a reference work for researchers as well as for practitioners who are involved on a day-to-day basis with boards and questions of governance.' Pierre-Yves Gomez, Director of the French Corporate Governance Institute, EM LYON, France
'Prof. Huse's book is based on two key premises, that the main task of a board of directors is to create value for the firm, and that to understand this value creation process one needs to look inside boards and understand how the team of directors works. Both premises are true and important. Thanks to the serious research he and his colleagues have carried out in the past 20 years, this book is a major contribution to our understanding of the realities of the fundamental task of corporate governance. A book every director should read!' Joan E. Ricart, IESE Business School, University of Navarra, Barcelona
'This is an extraordinarily insightful book on an important and timely topic: what boards do and how they add value in different organizational settings. Cognizant of the legal and political debates on corporate governance, Morten Huse pays special attention to board dynamics and how they influence the processes directors follow in making their decisions, bringing a fresh perspective on boards as a key instrument of governance. Huse's attention to smaller and privately held companies is an important contribution as is his discussion of effective ways to revitalize boards. The artful analysis of the various systems of governance worldwide is another contribution. This is an important book with a clear and an important message. Huse reaches the top of his craft, eloquently enriching the debate on the importance and future of boards. This book is a must read for scholars, managers and public policy makers.' Shaker A. Zahra, Co-Director, Center for Entrepreneurial Studies and Co-Director, Center for Integrative Leadership, University of Minnesota
'This is a 'must read' for every board member and everyone interested in the dynamics and working boards worldwide.' The Business Economist
'… a powerful lens to observe and understand corporate governance and boards …' Journal of Management and Governance