Business Ethics

Case Studies

CASE STUDY (20 Marks)

Governance gurus are savvy enough not to reduce diversity to simple \”ought to dos\” but also make the case for why it matters. The ability to reflect the markets served and bring a variety of decision-making styles and perspectives to the boardroom were points made in discussing traditional gender and ethnic diversity, though I heard a new one from DuPont CEO Ellen Kullman: \”passport diversity,\” meaning directors from other countries, bringing an international point of view. Pragmatism is also appreciated: Kullman pointed out that those jetlagged international directors who are only coming in for brief visits driven by board meetings don\’t end up returning high value. Throughout the sessions, the need for board directors to have political acumen as well as subject matter

expertise and leadership experience was noted, first by Joe Grundfest, a Stanford professor. To balance the competing interests cited above and still fulfill the duties of a board director, Grundfest and others made the point strongly that directors today need some political abilities to fully meet the job\’s requirements. Captured in the single question of \”Should board directors speak to the media?\” a role traditionally reserved for management there was a marked shift in several discussions signaling a new belief that board members could be valuable spokespeople in certain circumstances.

Answer the following question.

 

Q1. Why different mix of directors and skills sought for the board? Discuss.

 

Q2. Give an overview of the case.

 

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