Boards of directors have encountered a myriad of challenges and opportunities within the past year. With an ever-changing regulatory landscape and a volatile global economy, directors are starting to zero-in on more pressing risks that can lead to serious financial and reputational losses. This was emphasized at a recent panel discussion hosted by Ethisphere, Arthur J. Gallagher and Jones Lang LaSalle (JLL), where business leaders gathered to share insights and best practices on how some members of the C-Suite have built strong cultural frameworks that promote sound ethical values across the company.
Held at the University Club of Chicago, the event, titled “Harnessing Ethical Culture,” shed light on some hotly debated topics facing boards of directors. The participants included Darryl Hartley-Leonard, retired Board Director, JLL and retired CEO, Hyatt; Marty Nesbitt, Board Director, American Airlines, Norfolk Southern Corporation, JLL, and Co-CEO, The Vistria Group, LLC; and Sherry Barrat, Board Director, Arthur J. Gallagher & Co. and retired Vice Chairman, Northern Trust Corporation (See more about the participants and their unique backgrounds throughout the sidebars alongside this article).
Featured Participant: Marty Nesbitt
Marty Nesbitt, one of the panelists from the discussion, brought a wealth of knowledge to the conversation. Beyond being a director of American Airlines, Norfolk Southern Corporation, JLL and Co-CEO of The Vistria Group, Nesbitt was until January 2013 President and CEO of TPS Parking Management (known as the Parking Spot).
Featured Participant: Darryl Hartley-Leonard
Darryl Hartley-Leonard, who was also part of the discussion, is a retired Board Director of JLL and retired CEO, Hyatt. Hartley-Leonard was previously employed as Chairman & Chief Executive Officer by PGI, Inc., Independent Non-Executive Director by Jones Lang LaSalle, Inc.
“I was energized by all of the panelists’ comments and candor,” said Amy Graczyk, Director, Global Organization Effectiveness, Arthur J. Gallagher & Co. “In particular, Darryl Hartley-Leonard’s (former CEO of Hyatt Hotels) perspectives on the importance of role modeling ethics and nurturing and sustaining culture through story-telling.”
In Graczyk’s role, she is responsible for developing a strategic approach that communicates and reiterates the company’s values and culture. “One way to achieve this goal is through story-telling and the sharing of powerful examples of the values in action,” she added.
Amid the recent string of corporate scandals that have gripped corporate America, directors are also placing a renewed focus on transparency and due diligence.
“Transparency regarding board communications is very important especially when concerning major issues and crises,” said attendee Jane O’Neill, Corporate Investigations Manager, JLL. “It is always a best practice to be open and honest about what is going on and be accountable from the forefront. Additionally, boards can be especially impactful by not only knowing the business but also knowing the employees and employee culture across the organization.”
Featured Participant: Sherry Barrat
Sherry Barrat, another panelist featured in the discussion currently serves as the Board Director of Arthur J. Gallagher & Co. and is the retired Vice Chairman of Northern Trust Corporation. In addition, she serves as Corporate Director of NextEra Energy, Inc., and Prudential Insurance Funds. Moreover, Barrat is a Global Advisory Board Member at Women Corporate Directors.
Another attendee, Peggy Hardek, Partner, Risk Assurance, PricewaterhouseCoopers, said that directors should be given the opportunity to interact with management and front-line employees across the organization. “The panel demonstrated that strong board members don’t just monitor the culture of an organization, they also play an integral role in setting the tone and expectations for a CEO in striking the right balance for ethics across the company,” said Hardek. “It is very clear to me from the discussion that having an in-depth understanding of board members’ orientation around ethics and culture is key in driving the overall tone of the organization.”
More on this Topic:
Board engagement is an important part of the discussion around ethics, and is a topic Ethisphere encourages global companies to focus on. Hear more from leading board members at the 2016 Global Ethics Summit, taking place March 9th and 10th in New York City, where leaders will discuss how boards can better engage in the ethics and culture of an organization.
