1.8 A broader model of corporate governance

Question 1

Describe the 11Cs model of corporate governance.

Answer 1

The 11Cs model plots technical versus behavioural factors against individal versus board factors to produce a quadrant of four categories affecting corporate governance:

• Board demographics (individual technical)
• Board structures (board technical)
• Board attributes (individual behavioural)
• Board dynamics (board behavioural)

Question 2

What are the “Cs” of the 11Cs model associated with board demographics?

Answer 2

Do directors have capacity, capability and are they well connected?

Question 3

What are the “Cs” of the 11Cs model associated with board structures?

Answer 3

Does the board and its’ committee have appropraite configuration and are they compliant?

Question 4

What are the “Cs” of the 11Cs model associated with board attributes?

Answer 4

Do directors display competence, commitment and character?

Question 5

What are the “Cs” of the 11Cs model associated with board dynamics?

Answer 5

Does the board model a culture of cohesion and challenge?

Question 6

What do we mean by professional capital?

Answer 6

The functional, industry and executive management experience, as well as specific prior board directorships than an individual candidate might bring.

Question 7

What do we mean by social capital?

Answer 7

The number and stregnth of one’s personal connectors that may include professional networks, alumni networks, and social networks.

Question 8

What do we mean by personality?

Answer 8

The characteristic set of hevaiours, cognitions and emotional patterns that evolve from our biology and our environment.