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The CEO's Boss: Tough Love in the Boardroom resources

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12 T H E S O C I A L C O N T R AC T available for review by the board when it begins. With that in hand the board and CEO can begin to discuss the key challenges facing the com- pany. In most instances, these will be per for mance or opportunity gaps they want to close. Th is discussion is meant to allow for a collective under- standing of the strategic context and intent of the business. Th esh e next three points in the pro cess gather individual input and fl out the details of the Social Contract. During the third step, each individ- ual compiles his or her own list of priority areas along with a behavioral statement. A list that follows my fi ve preferred behavioral standards might look like this: 1. Commitment to values: We are a value- driven or ga ni za tion whose credo defi nes the way we do things. Our values are clearly stated for all our stakeholders (customers, employees, shareholders, and community) to know what we stand for as an or ga ni za tion for them. 2. Commitment to the stakeholders: We know our commitment goes beyond just doing well as a business. We feel a compelling com- mitment to do what is right for our customers, employees, share- holders, and communities in which we work. Seeking the right balance between and among these stakeholders is the key to our overall stability and success. 3. Commitment to risk management: We understand that we can fail if we don’t manage our risk. As much as we want to maximize our growth, we also need to constantly monitor our risk profi le. 4. Commitment to transparency: We have a fi duciary responsibility that is supported by our commitment to transparency with our shareholders and complete honesty within our board/CEO team regarding our fi nancial matters. We respect the nancial and nonfi requirements of confi dentiality where they apply but do not with- hold information from our decision- making pro cess. 5. Commitment to coaching: We believe in the continuous develop- ment of the board/CEO skills and abilities, and therefore commit the time and resources to learn how we can better perform in our respective roles. We view this as an obligation to our stakeholders and an investment in our future success. Once everyone has put a list together, I ask each member of the board to read his or her individual statements while others listen for items that

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