What if I told you there is this company the chairman to the board of advisor is hurting the company greatly, but for some reason he isn’t replaced?
Well things have gotten so bad, in the last shareholders meeting, the biggest group of shareholder bought up the question and the meeting was abruptly called off. Then in protest, a vocal leader of the shareholder took the issue to the industry leaders and handed a letter of protest, but only after the company send its security people after that vocal shareholder.
That is right, the chairmen of the board of advisor is causing a great deal of un-rest in at the company. In fact, this advisor helped the security guard apparatus of the company to take over the power from the shareholders and gave it to the security people to appoint the CEO of the company.
You can say all you want that the ousted CEO is good or bad, but to take power away from the shareholders that way, it is certainly totally lacking in good corporate governance, and it is “Illegal.”
It got to the point this chairman to the board of advisor calls people who does not agree with him, “Traitors” of the company, and the security guard of this company threatens those shareholders that are against the company’s top management.
In the mean time, the company suffers a great internal revolt. And all its functions are not working.
Its internal audit, for example, is twisted to keep the chairman of the board and the propped-up CEO interest in the company intact. It is now ranked as the second most corrupt company in Asia. Its operational performance, on all aspect, is one of the lowest around. Its shareholders are morale are so low, the happiness index is down. Even as this company staged an association meeting, most does not show up for the opening ceremony. Now its security guard is on the verge of warring with security guards of other country.
You name it, this company is suffering badly. Normally, most listed company in any stock market anywhere worldwide would have fired this chairman at the board of advisors already.
But why is he still in power at this company? That is the question we are going to try and answer.
Well nobody knows really.
But it may be related to how this company is very old and have a set of cultural values that it is trying to hold in place. This chairman of the advising board might be trying to up-hold that. But then what are companies supposed to do? Is it wise to up-hold values and tradition, at any expense?
Everyone is off-course grateful to the work the founder of the company had done and made the company successful. But does any company exist in a vacuum of its own environment or does the company exists in a wider global environment? Should the company adapt to that global environment? Or should it shun the globe?
Do new concepts and ideas that challenges the company’s values and culture should be accepted or should they be suppressed. Does the wish of the shareholders mean nothing at all? And is it right to use the security guard to scare the shareholders that do not agree? Is it right to have the security guard prop up the company’s top management?
And the globe’s commissions are watching-from the United Nations to human rights organizations. Even the globe’s popular culture, sees this company as nothing much more than a global class joke these days.
The solution is off course to bring all stake holders of the company together and seek a solution-a smart compromise and a melting of old and new culture-as this company is well known for doing.
But then again, does this chairman of the board of advisor is even interested in doing that? Sadly, the answer is “No” he is not interested.
And thus, the company suffers.