Principles over Politics in Boardroom Discussions

Listen to this BoardVision^TM podcast which features a discussion on effective strategies for directors to manage tough conversations in the boardroom and prevent controversies from escalating into full-blown crises.

In the October BoardVision podcast episode, “Navigating Controversial Conversations,” NACD advisor Susan Paley spoke with Anne Alonzo, a board member at PotlatchDeltic Corp. and Unitil Corp., and Bruce Haynes, senior vice president of corporate and external affairs at Charles River Laboratories to discuss how directors can handle difficult conversations in the boardroom.

Here are a few highlights from the episode.

Difficult conversations in the boardroom can’t be avoided, though there are ways to handle differing opinions. Effective boardroom discussions rely on diplomacy, patience, and strong listening skills, especially on topics where there may be disagreement. Directors should approach challenging conversations with an open mind and respect for their peers. They should also leverage the guidance of the lead independent director or chair to ensure these discussions remain professional and do not veer towards partisanship or personal biases, therefore fostering constructive dialogue and maintaining collegiality.

Prepare your organization for the unexpected with the implementation of a structured, proactive crisis management framework, especially when it comes to political risk. In addition to tabletop exercises, boards should develop a comprehensive crisis framework to respond swiftly and strategically to post-election risks. With the unknowns surrounding what the new administration may bring, boards should consider how the election results may affect their workforce and operations. This includes potential supply chain disruptions and regulatory changes. Furthermore, directors should review the framework in a regular cadence and engage with internal experts and external advisors to ensure that a wide range of risks are being considered. A well-prepared framework allows boards to easily identify which issues require engagement and action and which can be deprioritized, building a resilient organization equipped to face future challenges.

A balanced approach that considers an organization’s core values and stakeholder expectations when engaging in public discourse is vital. With an increasingly volatile geopolitical environment, companies are struggling to decide when they should engage in discourse on social and political issues. Directors should evaluate if and how they can meaningfully influence the issue and consider the impact that taking a public stance may have on long-term goals and stakeholder trust. Boards can navigate social issues responsibly and authentically by aligning their stance with the organization’s mission, core values, and stakeholder expectations when releasing public statements.

Want to hear more? The full episode is available on Apple Podcasts, Spotify, YouTube, and the NACD website.