Capitalism and market forces have brought us great prosperity and progress. However, our current corporate governance system has compromised the stability and future of our society, explains Prof. Dr. Leen Paape in his speech. Our economy should not just be about profit and shareholder value, but about creating sustainable value, for everyone. According to Paape, it's time to broaden our view and redefine corporate governance. He calls upon society to relinquish the dominant logic and introduce system thinking, to define the long term and look for ways to allow companies to further take their place in society and strive for sustainable value creation.
As a part of Nyenrode Corporate Governance Institutes strategic focus on 'Making Markets Fit for Purpose', Nyenrode Business Universiteit and NewForesight Consultancy facilitated an author workshop to write a book on 'Changing the Game: How to Achieve Sustainable Market Transformation'.
While larger listed companies are increasingly introducing an Internal Audit Function (IAF), this position rarely exists within smaller listed companies. The main reason cited is that these firms believe they are too small for such a role. This is one of the conclusions of the Internal Audit Monitor 2017 study carried out by FSV Risk Advisory on behalf of the Stichting Vaktechnisch Onderzoek IIA in collaboration with Nyenrode Business Universiteit.
The paradigm for, notably, listed and other systemic business (including institutional investors) is changing with business stewardship focusing on balanced long term value creation for all stakeholders and aligned with a widely-accepted societal agenda.