Global survey reveals directors' top concerns

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“The survey highlights that directors around the world share similar concerns and challenges as they look to the future for the organisations they govern,” said GNDI chair, Angela Cherrington, who is also CEO of the Institute of Directors in Southern Africa (IoDSA).

Continental concerns

“Within the global picture, regional findings showed poverty and inequality were most concerning for governance communities in Africa-Middle East and Asia-Pacific. Taxation was the biggest concern for directors in the Americas, while directors in Europe were most concerned about the cost of healthcare.”

The Global Director Survey was conducted over six weeks from mid-May to end of June 2018 by the Institute of Directors of New Zealand on behalf of the GNDI.

2,159 directors from 17 countries participated in the survey. 53% of participants served on three to four boards, indicating solid experience and broad insights. 36% were on boards of private companies, 23% were on boards of listed companies, and 22% were directors of not-for-profit organisations.

The Global Director Survey Report 2018 provides wide-ranging insights into the topics that are top-of-mind for directors worldwide, including social and economic issues and risks, business confidence, governance practices, technology and data governance.

Big Data top technological disruptor

Big Data also ranked high on the global agenda as a potential disruptor – 63% of directors from around the world regarded Big Data as the top technological disruption to their organisations.

“Although Big Data is on the governance radar, many boards are not taking advantage of it to improve effectiveness, boost performance, mitigate risks and improve data privacy,” said Cherrington. “There are immense potential benefits from data and data analytics, alongside equally significant privacy risks.”

The Global Director Survey found that though 61% of directors had good or excellent understanding of their organisation’s data privacy practices, 37% felt they had limited or no understanding.

53% of directors surveyed believed their boards understood cybersecurity and cyber-risks to their organisations.

“Boards have a key leadership and oversight role in data governance. For a board to ask management the right questions and hold management to account, they need to understand and address data privacy and cybersecurity issues as they arise.”

Focus shift to triple bottom line

Ethnical behavior, health and safety and employee engagement were of particular relevance to the directors surveyed.

Environmental issues rated lower in the survey, however, Cherrington expects that over time environmental issues will be more on the board radar.

“Wider environmental concerns can impact the sustainability of organisations long-term,” explains Cherrington. “The environment, climate change, carbon-related issues and resource management will become more important and part of the conversation for more countries as the Paris Accord and United Nations Sustainable Development Goals get more attention.”

Directors’ business confidence generally positive

The Global Director Survey 2018 also probed directors’ business confidence. The survey found 45% of directors were “mostly” or “very confident” about prospects for growth over the coming year. Another 36% were “moderately confident”. Private and listed companies were more confident than not-for-profit and government organisations.

The full 43-page Global Director Survey Report 2018 is available at bit.ly/gndidirectorsurvey