According to a recent article at JournalStar.com, Warren Buffett used his letter to Berkshire Hathaway stockholders to bring attention to corporate responsibility and the government bailout of financial institutions.
Warren Buffett wrote:
“In my view, a board of directors of a huge financial institution is derelict if it does not insist that its CEO bear full responsibility for risk control. If he’s incapable of handling that job, he should look for other employment. And if he fails at it – with the government thereupon required to step in with funds or guarantees – the financial consequences for him and his board should be severe.”
“It is the behavior of these CEOs and directors that needs to be changed: If their institutions and the country are harmed by their recklessness, they should pay a heavy price – one not reimbursable by the companies they’ve damaged nor by insurance. CEOs and, in many cases, directors have long benefitted from oversized financial carrots; some meaningful sticks now need to be part of their employment picture as well.”
My guess is that most people agree with Warren Buffett. How about you?
If you agree with Warren Buffett and you are an organizational leader:
- How are you implementing corporate responsibility across your organization?
- How are you maintaining corporate responsibility with personnel and economic changes?
- How are you ensuring accountability across your enterprise?
Lessons learned (and Warren Buffett too) validate the need for corporate responsibility and accountability…I hope your organization and your leaders are paying attention.
