Company directors will need more than basic business accumen to execute leadership while technology becomes more prevalent and shareholders more engaged.
A how-to-guide to better corporate governance by consultancy firm Delloite, said board members needed to be agile, curious, humble and intelligent, with the technical knowledge necessary to navigate the future.
Deloitte partner Brett Tomkins said while international directors were already aware of such challenges, those in New Zealand were not.
“New Zealand really needs to, in some ways, catch up.”
He said local companies also lacked transparency in reporting on environmental, social and governance issues.
“Boards make decisions today that reach far into the future and as such need to ensure they assess, reimagine and challenge their organisations impacts.”
Directors had to think long-term when they made short-term decisions, Mr Tomkins said.
“It’s very easy to focus on one group of stakeholders. But, if you want to create value over the long-term, you really do need to understand how those stakeholders, and their needs, inter-relate.”
This story originally appeared on Radio New Zealand.