Ireland Unveils Regulatory Overhaul in Corporate Governance

According to the Independent, Irish financial regulators have unveiled a revamped Corporate Governance Code, and have pledged to act aggressively against companies that balk at the new rules. The Code makes the distinction between major institutions and smaller organizations. The largest companies are now required to hold 11 board meetings per year, while smaller organizations must hold quarterly meetings. Moreover, directors of major companies may only sit on three boards, while directors of smaller organizations can serve on five boards. The code must be implemented by January 1, 2011, but institutions can file for an extension to June 30.



BP Oil Spill to Cause Companies to Reframe Corporate Sustainability

In the wake of the BP oil spill in the Gulf of Mexico, companies are more likely to take corporate sustainability more seriously, and stakeholders are more likely to push for transparency. According to CFO Magazine, while sustainability is a term often bandied about, few enterprises have given it more than lip service. That may change, thanks to accounting and Securities and Exchange Commission rules that recognize environmental contingent liabilities, along with the resulting impact to the balance sheet. Companies like Hewlett-Packard and Wal-Mart are leaders in recognizing the relationship between sustainability and risk management, while Dow Chemical keeps board members informed about sustainability risks.



Weak Governance Boosts Likelihood of Class Action Suits

Over the past year, most securities litigation and SEC investigations have revolved around financial services companies. According to CFO Magazine, now the litigation and enforcement focus is shifting back to nonfinancial firms, specifically in the arenas of earnings guidance, insider trading, and accounting. Yet the largest financial hits are taken by companies that exhibit weaknesses in corporate governance. In other words, gaps in governance not only increase exposure to litigation, but also result in settlements with greater dollar amounts. One significant weak link is when board members and CEOs have worked together for so long that the board is more closely aligned to management than to shareholder interests. Another is when two or more board members serve together on other boards. Finally, companies whose boards include members with questionable qualifications are also exposed to greater risk. To mitigate this risk, C-level executives should conduct governance-risk benchmarking with competitors and industry leaders and present their findings to the board.



Join Us in Supporting Earth Hour

In keeping with our organizational values, the GRC Group makes a continual effort to minimize our carbon footprint and to support other organizations that are working to raise awareness and act upon the environmental pressures facing our planet. Because good governance encompasses being a good corporate citizen, we urge you to join the GRC Group in supporting Earth Hour this year.

The concept is simple. This Saturday, from 8:30 p.m. to 9:30 p.m. local time, turn out the lights.

Earth Hour was launched in Australia in 2007, and gained a tremendous amount of momentum last year. Even Google "went dark" for Earth Hour, changing the background of their home page from white to black. The goal this year is to reach 1 billion people in 1,000 cities around the world.

It's easy to sign up as a company sponsor. Visit the Earth Hour website to show your organization's support of Earth Hour.

Here's a three-minute video that explains the history and purpose of Earth Hour: