Reinventing Corporate Governance post 2001 A question of Trust

Feb 2002 The Mt. Eliza Business Review

“The downfall of every civilisation is in trying to solve
the problems of today with the solutions of yesterday.”

Anon

In the US, it took a string of rollover accidents, more than 200 of them fatal, before car giant Ford decided to recall its Explorer four wheel drive and replace faulty tyres.  Enron failed spectacularly in a US$60 billion dollar collapse poisoned with the lies, cons and deceptive practices of its leaders, so vile that one of its senior executives chose to kill himself rather than face prosecutors. 

In Australia, Ansett failed and then became embroiled in claims of asset stripping by its trans Tasman owner Air New Zealand.  Meanwhile, investigators pouring over the carcass of HIH now say the company was doomed months before its directors pulled the plug.  They question the independence of Auditors with consultancy arms who now admit they had their head in the sand. 

Have we lost our way?  Are we trying to govern companies today using yesterday’s rules?  Are the people run…