Directed by Professors David Chekroun and Andrew Shagrin, continuing the work of the now-terminated professorship, the Institute for Corporate Governance will explore three principal issue areas:
- The ever-changing balance of power among boards of directors, shareholders, executives, and other key stakeholders in the governance of companies and other private entities.
- The evolving powers, rights, duties, and practices of boards of directors.
- Controversial, emerging, and important topics in corporate governance.
The Institute will examine these issues through three main activities:
- Research and publications.
- Organising conferences & seminars.
- Preparing future leaders for corporate governance challenges.
In addition, the Institute for Corporate Governance is making available, for free, a set of innovative educational materials to propel learners into the boardroom.
The centerpiece of these materials is a unique boardroom simulation in two stages:
- Learners first receive an agenda pack, prepare for their upcoming simulated board meeting, and hold their own simulated board meeting at which they ask the questions and make the observations that they think ought to be asked and made.
- Learners then watch a video of experienced practitioners simulating the very same board meeting. The experienced practitioners prepared using the same agenda pack as the learners, then in an unscripted videotaped session, the experienced practitioners simulated the same board meeting, asking the questions and making the observations that they thought ought to be asked and made.
These innovative materials allow learners to apply concepts of corporate governance in a practical way, greatly enhancing their understanding of how corporate boards really work.
“Corporate governance is both very important and very misunderstood,” says Professors David Chekroun and Andrew Shagrin, founders of the Institute for Corporate Governance.
Professor Léon Laulusa, Acting Executive President and Dean of ESCP, explains the importance of good corporate governance: “Companies that we admire are typically also companies with exemplary corporate governance. Companies that disappoint us, or that engage in activities that we find regrettable or even shameful, are typically also companies with weak corporate governance. The correlation between good governance and good outcomes is so strong, and the correlation between bad governance and bad outcomes is so strong, that it’s reasonable to conclude that there’s a real causal relationship: good governance causes good outcomes, and bad governance causes bad outcomes.”
To launch the Institute for Corporate Governance, Professors David Chekroun and Andrew Shagrin organised an event gathering scholars, practitioners, and students on the Paris campus on Tuesday, 14 March.