Against the background of these pressures, the traditional definition of a director's responsibilities is probably too narrow. Mr. Denny's discussion wasn't just about corporate social responsibility. That's not new. What is new and is increasingly on the agenda for directors is their own responsibility, in the board room, for corporate ethics, organizational culture, compliance with the law, and social issues and initiatives. The context for corporate governance in America, and indeed around the world, has changed dramatically in the last 20 years.
Business is under greater scrutiny by governments, by shareholders, by the media, and by the public.
Witness the changed norms of corporate behavior in Italy and Japan. Issues that lightly touched business are now challenging management and directors daily. The scope and depth of change is evident in many areas, but we would cite seven. Increasing investor expectations. Today's investor is far more likely to hold directors accountable for a company's financial performance.