Evaluating the effectiveness of corporate boards

Abstract

Purpose This paper aims to examine how board evaluations have emerged as an important tool in public policy and corporate practice for enhancing board effectiveness. Design/methodology/approach The authors review the extensive literature on effectiveness and the emerging literature on board evaluation to identify ways to assess the current policy direction for external evaluation of corporate boards. Findings The paper develops an integrated framework of effectiveness that can be used as a tool for board evaluation, in particular for externally facilitated exercises. Research limitations/implications Through its integration of prior conceptual work this paper advances our theoretical understanding of this emerging part of policy and practice, with to-date lack much empirical basis. Practical implications The framework that is developed shows ways to focus how the practice is conducted by boards and external evaluators alike. Social implications It can also help policy formation by pointing out the limitations as well as benefits of various policy options. Originality/value In pointing to ways to develop study of the field through empirical research, it provides direction for future academic research. It also identifies a need for and direction toward the professionalization of practice.