ABSTRACT
The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. Boards need to be paying increasing attention to the environmental, social and governance performance of their firms. Good corporate governance suggests that the role of the board is to set the strategic direction of the company, check on progress, hold management to account for their performance against the strategy, appoint and if necessary remove the chief executive officer, ensure effective succession-planning, and be the guardians of the corporate values—for 'the way we do business around here'. Handling sustainability issues should be part of the regular appraisals of board effectiveness that good governance generally requires chairs and directors to do at least annually. The governance of responsibility needs to be neatly positioned as an integral part of the business of the board.
