The Purpose of Boards | Non-executive Director Programme Series

There is much discussion around the purpose of boards – their values, culture, social issues, trust and responsibility - yet we continue to hear regularly of the collapse of businesses that can be traced to a lack of these essential criteria. When faced with pressure for short-term financial returns, can corporate boards sometimes be tempted to sacrifice long-term sustainable profitability for short-term results? Do business leaders truly understand the fundamental link between living core values and long-term profitability?

Such understandings will have an impact on employees and customers alike. If organisations are to attract and retain loyal customers, then business leaders and boards must attract and retain happy, loyal employees, whilst recognise that corporate boards have a broader responsibility beyond financial performance.

As pressure increases on boards to ensure that companies are contributing positively to society and addressing societal issues, there is a growing expectation that these should be reflected and incorporated into board decision-making processes. Many corporate boards are therefore expanding their focus to include a broader range of considerations and are becoming more diverse in terms of their membership to ensure, decisions consider the interests of all stakeholders; employees, customers, suppliers and the wider community.

Much is written about the value of a winning culture, but boards have two key roles in cultivating it – example and accountability. In order for a board to provide truly meaningful accountability, its members must live the core values of the organisation.

Guest speaker bio

Lena Wilson

Lena has over 15 years experience in NXD and Senior Independent Director roles, including FTSE 100 companies across the financial and industrial sectors. She also holds Advisory roles in UK Government and global Fortune 500 technology businesses. An Investor in small growing businesses, Lena has a strong interest in internationalisation and culture. Prior to her NXD career, Lena had a multi-disciplinary global career and is an experienced CEO having led organisations with an international footprint.

Her current portfolio includes Chair of Picton Property, Chair of Chiene + Tait LLP, NXD and Chair of the Group Performance and Remuneration Committee NatWest Group plc, Chair of AGS Group, Member of the EMEA Advisory Board of Workday Inc and Visiting Professor University of Strathclyde Business School.

Previously Lena was Chief Executive of Scottish Enterprise, a Senior Advisor at the World Bank, NXD at Intertek PLC, NXD at Scottish Power Renewables Ltd, Senior Independent Director at Argentex Group PLC and a Member of the Prime Minister’s Business Council.

For more information on the Programme including the other sessions in the series, please visit the Non-executive Director Programme overview.