Good Governance Is Good Business

Meeting of credit union board members.

Within the public corporate sector, there is movement afoot to increase focus on environmental, social and governance issues (ESG). Instead of a limited short-term bottom line focus, ESG considers the benefit to all stakeholders, including employees, customers, members and the community. Credit union core values contain an intuitive sense that prospering in the long run goes beyond just delivering immediate financial performance. Credit unions know they must also make a positive contribution to their members, society and the communities they serve.

The “G” in ESG, however, deserves special attention from credit union boards and senior management. Without good governance, sustainable value creation becomes much more difficult, if not impossible. Governance best practices will energize your credit union, and support the board and senior management in creating and maintaining a healthy culture based on values and trust.