Added Perspective

Should a Board Have a Reputation?

August 15, 2018

By Lex Suvanto, Edelman

Boards of directors have historically operated behind closed doors, unseen and unknown to the outside world. If you asked a director whether they think their board should have a public reputation—one that is distinct from the company—most would respond with a resounding no.

 

However, proprietary research conducted by Edelman concludes that a board of directors does indeed possess its own reputation, which must be actively considered and managed. The research surveyed institutional investors with assets under management of over $1 trillion. Two-thirds of respondents said they “must trust a company’s board of directors” before making or recommending an investment. Two thirds of respondents also agreed “an engaged and effective board is important when considering a company in which to invest”. 

 

To read the full report on Edelman's research, click here.

 

 

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