Medtronic's directors conduct an annual survey of approximately 15 percent of the company's 10,000 employees for compliance with the company's code of conduct. The survey is reviewed by the company's independent auditors who report their findings to the audit committee of the board. In this environment, when change is continual, we need to better understand what works and what doesn't because the barriers to change are formidable. While much has changed in the operation and structure of companies, less change has transpired in the operation and structure of some boards. Traditions of board culture and behavior are tough to change.
Organizations tend to stick with what they know the tested models of the past.
Challenges of leadership. Acceptance of social responsibility and stakeholder management is by no means universal. Complexity of information. Systematic information describing how issues of ethics, organizational culture, or society get onto board agendas and how boards are responding does not exist, and anecdotes are not enough. A nationwide survey of board composition and structure by a major accounting firm makes no mention of such issues and focuses solely on traditional board committees.