The string of recent news concerning faltering global companies—such as Barclays and JPMorgan Chase—indicates a need to change the corporate culture perpetuated by some professional boards, says a new report from the CFA Institute called Visionary Board Leadership: Stewardship for the Long Term.

Rather than focusing on short-term goals, says the CFA, publicly traded companies should focus on how they can restore global investor confidence and improve the industry over the long term.

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“Recent events have shown us that better board leadership is needed,” says Matt Orsagh, director for capital markets policy at CFA Institute.

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The CFA Institute interviewed current and former directors, investors, issuer representatives and corporate secretaries to gain insight on effective corporate governance. And first, they urge urges directors to actively eliminate corporate malfeasance.

Steps to building an effective corporate board include:

  • Shareowner Communication: Listens to the concerns of shareowners, and communicate all long-term visions and strategies.
  • Strategic Direction: Oversee and understand all corporate strategies and monitor the implementation of all plans. Pay attention to the inherent risk in any given plan.
  • Risk Oversight: Situate risk as a board-level responsibility. Oversee processes for identifying, managing, and mitigating risks to the operations, strategy, assets, and reputation of the company. But, as risk can also equal reward, encourage inelligent risk-taking that aligns with company goals.