For journalists reporting on companies, it can be easy to miss signs of fraud, theft, waste and abuse of power beneath the barrage of press releases and financial documents.
A recently released guide from the International Finance Corporation (IFC) Global Corporate Governance Forum and the International Center for Journalists offers tips on covering corporate governance. The 76-page guide is also available as a PDF file.
Here are five ways that understanding corporate governance–how companies are governed and controlled–can help unearth stories:
Know the board of directors
Journalists should carefully examine a company’s management team, but it’s equally important to monitor the board of directors, according to the report. Warning signs include absence of key committees, a board that deviates from the standard nine or 10 members, or several non-independent members with additional company ties. Continue reading