Corporate Boards Should Conduct a Tone-at-the-Bottom Assessment
The Tone-at-the-Bottom assessment is a critical review of the methods and channels for relevant independent non-financial information to flow from the bottom (employees, suppliers, and other stakeholders) of the organization directly into the boardroom. Moreover, it examines how the board members use that information to oversee strategy development, risk management, value creation and long term corporate sustainability
The mission is to enhance corporate culture such that employees in the workforce are knowledgeable about the country’s founding principles, the constitution and private sector contributions to society. This is done through corporate governance campaigns that ensure long term corporate sustainability and a vibrant capitalistic economic system from which all citizens benefit.
Corporate Boards Should Ensure Employees are Informed Voters
It is the responsibility of the corporate directors to ensure that all employees are knowledgeable about basic civics and private sector contributions to society. Employees should know how the political system works. Corporate directors should not rely on other institutions - unions, public schools, the media, etc. - to frame the political issues. Corporations must enhance their human capital in order to ensure long term corporate sustainability.
Not only do they have a fiduciary duty to enhance value creation for the corporations on whose boards they serve, they must also ensure long term corporate sustainability and the robustness of the private sector. Shareholders, employees, suppliers, customers and other stakeholders in our societies rely and depend on robust capitalistic economies. To that end, it is critical that non-executive directors have an effective conduit for the flow of independent non-financial information from the bottom of the company into the boardroom. Employees at the bottom of corporations are also consumers, voters and operational experts - their intimate knowledge of operations and views on corporate culture matter. Monitoring the “tone-at-the-bottom” enhances strategic development and risk management oversight.
As the captains of the private sector, corporate directors and chief executives must honor their fiduciary duty to monitor the tone-at-the-bottom. By doing so, they mitigate:
Moreover, many of the ideas for continual improvement germinate at the bottom of the corporation. Further, opportunities to strengthen relationships in the communities come from the bottom. Non-executive directors who monitor the tone-at-the-bottom can make a positive difference in societies around the world.