“Board Engagement” has become topic of discussion among global Boards as a key mechanism that all organizations “must have” (not just “should have”) in order to sail through disruptions   and tackle rapid changes in business environment. Therefore, it is essential for the Board to establish policy and clear guideline in developing-promoting Board engagement throughout directorship (thoroughly from entering until the end of service term of director).  The Board should periodically review and communicate such behaviors with one another to ensure Board member being a “role model”.

This guideline comprises two sections including 1. Key Principles and 2. Practice Guidelines.

Key Principles:

1. Board Engagement is a mechanism to bring out untapped potential of each director and fully utilize them. It is a factor that will drive dynamics and enhance the effectiveness of Board performance in governing the company towards long-term objectives, sustainable growth, and for the utmost benefits of stakeholders.

2. Board engagement can be clearly and concretely built if the Board can create boardroom culture that aims for close collaboration among Board members, CEO, and the management while contributing appropriate and adequate time to govern the company.

3. The concept of promoting Board engagement is not meant only to push each director to “contribute more time” to perform Board duties but also to create more “in-depth” engagement so that the Board can fully contribute knowledge/competency in governing the company under time constraints.

4. The Board should recognize and emphasize the “Evaluation of Board engagement level” by taking into consideration the following issues:

4.1 How convince is the Board in the company’s purpose?

4.2 Does the mechanism used to evaluate Board performance valuation effective?

4.3 Does the Board understand expectations toward their performance?

4.4 How effective are the Board’s communication and data access processes?

4.5 Does the Board have a mechanism to bring out untapped potential of each director and utilize them?

5. Successful Board engagement requires aligning attitudes among Board members, Chairman, CEO, and the management concerning the “value” of engagement as a crucial factor that will uplift governance standard toward corporate success and sustainable growth.

6. Stratagems to promote Board engagement are not “one off” but can be arranged throughout directorship. They can be included in all dimensions ranging from recruitment, orientation, committee nomination, strategy development, succession planning, Board meeting, to Board evaluation and development.

 For full "Guideline on Effective Board Engagement " please download below