How HR can make itself invaluable to the board

HR practitioners need to better understand and enunciate what they are doing to ensure knowledge and innovation practices add to the bottom line
By Doug Macnamara
|Canadian HR Reporter|Last Updated: 09/12/2005

Governance practices have been in the spotlight in an effort to improve both governance and executive behaviour, plus enhance public image. So, what do these evolving standards mean for the relationship between the board of directors and the vice-president of HR?

Governance fundamentals

The board has two overarching duties: sustainability of the enterprise, and the relevancy of products, programs and services to the communities the enterprise serves. With this in mind, improved profitability and shareholder/stakeholder relationships, accurate public disclosure and transparency, plus reliability of reporting systems, have been the most immediate fallout of the Sarbanes-Oxley Act in the United States and the soon-to-be-established guidelines of the Canadian Securities Commissions. This means many Canadian companies will need to change work processes and implement new policies and reporting systems.