Corporate Boards Evolve: From Compliance to Growth Drivers

In a significant shift, corporate boards have moved beyond their traditional focus on compliance, embracing a new role as drivers of growth and innovation. A recent survey by Executive Access, commissioned by The Times of India, reveals this transformation.

Conducted among 120 board members, the survey highlights the evolving priorities of boards. "The survey indicates that boards today are more evolved and have moved beyond corporate governance," said Ronesh Puri, Managing Director of Executive Access (India). A well-structured, business-savvy board can significantly drive growth.

Harsh Goenka, Chairman of RPG Enterprises, notes that this evolution has transformed corporate boards into a powerful strategic necessity. "In the past, corporate boards were often a mere legal formality, convened to tick the compliance box. Today, they've transformed into a pivotal force in defining a company's trajectory."

Boards are now seeking diverse expertise and experience among their members, as businesses navigate an increasingly complex and uncertain environment. Goenka emphasizes that leadership teams no longer just seek approval but actively require guidance from the board.

"Leadership teams are no longer just seeking validation; they're actively seeking guidance and insights from the board," he stated. Boards must leverage their networks to provide strategic connections, harness technology, implement strategies, and plan for succession.

The survey indicates that boards are now focused on ensuring business continuity and navigating emerging challenges. As businesses face rising pressure to adapt, this shift marks an important milestone in corporate governance.