Company directors are increasingly concerned about what stakeholders think amid rapid technological changes and skills, a new survey shows.
The survey shows directors are more concerned about ethics and stakeholder interests. Photo: 123rf
The Institute of Directors-ASB Bank annual sentiment survey indicates directors are more concerned about ethics and stakeholder interests, which were top of mind with 91 percent, compared with 86 percent last year.
The head of the institute's governance leadership centre, Felicity Caird, said boards must assess the emerging risks to business sustainability, including ethics and conduct risk.
"Boards play an important role in setting the tone on ethics and culture for the organisation, and communicating it," she said, adding that social media and the risk of cyber attacks were part of the increasingly complex environment businesses were operating in.
"The ability for directors to navigate the rapid changes caused by the digital revolution is a key challenge, and should be a priority for boards," she said.
Among other key findings in the survey were a sharp fall in confidence about the economic outlook, with a net 30 percent expecting an improvement in the coming year compared with 50 percent last year.
And directors were slightly less upbeat about their own firms' outlook, with 69 percent expecting an improvement against 75 percent the year before.
ASB Bank chief economist Nick Tuffley said the survey indicated ongoing optimism in the economy, but with more caution.
"We are continuing to see the impact of the tight labour market register highly in directors' key challenges," he said.
"This tightening in labour is due to strong economic performance, which has created a highly competitive market for talent."
