LETTER: Diversity is unlikely to fix conflicts of interest on corrupt boards
The roles of directors and informed shareholders are inseparable in too many governance environments
The spotlight has fallen on the role of boards, especially regarding poor and sometimes corrupt decision-making and practices in a number of diverse companies. The editorial (“Rush Offshore Wreaks Havoc”, March 12) stated it properly saying that the value destruction “ultimately boils down to poor decision-making by well-paid management and boards”. In an article written by Munya Gwanzura, it is suggested that diversity holds the answer to effective boards (“Board Diversity Is the Bedrock of Good Corporate Governance”, March 13). While diversity at all levels in the workplace is well-advised and needed to ensure proper social and economic transformation, we should be careful not to think that diversity will necessarily resolve the greatest flaw that face boards — conflicts of interest. In too many governance environments the roles of directors and informed shareholders are inseparable and we all know when faced with that choice, self comes first. Often the shareholding is not direct...
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