ABSTRACT
We accept the premise that firms are a cornerstone element of technological and economic progress. Therefore, it follows that boards of firms have a key role to play. However, persistent leadership failures suggest that boards and their members do not always act in the best interests of the firm and shareholders. Thus, if boards are not adding value, then they are likely destroying it. Business failures represent failures of governance by owners or their agents. Collectively or individually, board members have miscalculated; delayed or left decisions unmade or made ethical errors that have caused value destruction. We contend that part of the reason for persistent and increasing moral missteps in business is a noticeable shift from collectivism to individualism. To explore this, we provide some mental scaffolding with discussion about culture and individualism, dominant logic, dynamic capabilities, ethics, biases and groupthink. In the end we agree with Nonaka and Takeuchi (1995) who note that knowledge does not always translate into wisdom, and that wise decisions are those that serve society. In our view, this supports the need for a more collectivist mind-set in decision-making amongst board members.
