CORE CORPORATE GOVERNANCE DILEMMAS FACING BOARDS

Abstract

Directors and boards currently face many complex challenges in times of diversity, change, competition and regulation. A key factor of success in practicing good corporate governance is the board‟s ability to cope with paradox. The purpose of this research has been to explore the core corporate governance dilemmas facing boards. Furthermore, the purpose of the study was to determine best practice for managing paradox in the context of corporate governance. The investigation was qualitative in nature. Content analysis was done on the results and the constructs identified by sample respondents were compared to the literature. The main finding was that there are six core corporate governance dilemmas facing boards and that boards require specific competencies in order to cope with these dilemmas. Eight competencies were identified. These findings were summarised in a model that provides a consolidated view of the core corporate governance dilemmas and of what competencies of the board contribute to coping with these dilemmas. The model provides a tool for directors wishing to shape their boards to manage paradox and specific core corporate governance dilemmas facing them.