I couldn’t agree more with Stefan Sterns words, director of strategy at Edelman and former FT management columnist. To quote him: “…we need his wise, calm and reasonable voice to put some sense back into the debate on corporate governance.” And boy does Bob Garratt do it.
This book is more so relevant with the recent trials and tribulations that have hit the news over recent months with the News of the World scandal, and most recently with the resignation of George Entwistle at the BBC.
The book sets out in a clear and coherent manner how companies should be governed, what makes good corporate governance, and how companies can prosper by following some key and simple principles. The title of his book, an Ancient Chinese saying, is true, if the people leading the company are allowing the rot to settle in, how can you expect those of your employees to act in the interests of the company, and how can you create shareholder and stakeholder value with the long term viability of a company? One only needs to cite such scandals as Enron, and it’s financial creativity that brought about its demise to the detriment of so many.
If you have an interest in corporate governance this is a definite book for your reading list, and one that should be placed firmly at the top of it. It’s one in which you can form a foundation of knowledge on, and build upwards from.
If you’re not into corporate governance, pick up the book and by the end of it, you will be. Loved it, loved it, loved it.