Board Awareness: Culture and Red Flags

Board of DirectorsCultureFraudGovernanceRed Flag
Written By Jonathan T. Marks

Culture

Edgar Schein presents culture as a series of assumptions a person makes about the group in which they participate.Below are some "red flags" that may indicate there is a problem with the culture of the organization.I am interested in any others, so please add your anonymous thoughts here.The results will be published soon.

Some Red Flags

  • Inner circles or cliques
  • A pattern of un-remediated errors or weaknesses
  • Tightly controlled meetings (board agendas)
  • Narcissistic or Imperial CEO
  • Weak executive sessions
  • Evaluations of senior leadership that rate each area as "outstanding."
  • View of the board by senior management (mushrooms, private club, etc.)
  • What others (outsiders) say

Thank you!Jonathan T. Marks, CPA, CFE

Jonathan T. Marks
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