Key trends related to the corporate disclosure of environmental and social practices in Europe

Central and Eastern Europe (CEE) is the region with perhaps the most severe shortage of labor in the world. Many companies with operations in this region are running into hiring difficulties and labor costs are rapidly rising. While a problem for companies, workers are benefiting and taking home large real wage gains.

Artificial intelligence (AI) is seen by some as a magic solution to every business problem, by others as ineffective. IBM’s computer Watson may have won “Jeopardy!” (magic!) but Watson made some ridiculous errors (ineffective!). The IBM computer didn’t understand puns or irony. Humans do. AI is neither magic nor ineffective; it’s a technology that can augment human judgment not replace it. Understanding the strengths and limits of AI helps companies to implement it wisely.

Seventy-four percent of employees who do not serve on nonprofit boards are interested in doing so. This is a great opportunity for talent development of millennials and employees from diverse backgrounds, two groups underrepresented on boards. Companies can make board work happen for their employees by helping them find suitable matches in the nonprofit sector, by training them in the legal and oversight responsibilities they will need, and by supporting and recognizing them for their work.

In advising non-director officers about conduct that could give rise to fiduciary claims, it is prudent to routinely advise that they take steps to meet the conditions of the business judgment rule. However, practitioners should also keep in mind that there may be a question whether officers will be entitled to that protection.

Sophie L’Helias, a senior fellow with The Conference Board Governance Center and founder of the LeaderXXchange, was named to Global Proxy Watch’s “2018 GPW 10” list.