Ethics - Driving the Agenda for Advisory Boards

Megatrends are driving advisory board activity in new ways indicating the diversity of the management model is its strength.

The Megatrends Summit hosted by the Advisory Board Centre in May 2023, was the launching pad for the new edition of the State of the Market Report.??Produced biennially, the 20% growth of the advisory board sector has been driven by several factors.

1. Increased and wider use of advisory boards within governance systems. The challenge of constrained governance boards with larger board packs and growing agendas, is giving rise to specialised advisory boards within the broader system of governance.
2. The stakeholder economy is creating the need for greater consultation with customers, supply chain, employees and the community at large.??The introduction of regulation eg in the aged care sector, will drive more advisory boards as a mechanism to give the vulnerable customer a voice.??
3. Project “for purpose” advisory boards now account for 53% of newly created advisory boards, demonstrating the practical and fast execution to respond to market risk and opportunity.

According to the Chair of The Best Practice and Ethics Advisory Board (BP&E AB), Sandra Gamble ?“there are many implications arising from the current State of the Market Report for the sector.??As the Chair, I will be seeking to stimulate the debate in three key focus areas in 2023.??

• Defining an expert?– Transparency of individual expertise and enabling companies to blend the skills/attributes they need to create the most useful advisory boards.
• Ethical considerations today?– given the concern raised and emerging relevance of AI and ethics, and time spent discussing this, what are the big ethical dilemmas facing advisory boards now? What guidance do advisory boards need to navigate them?
• Advisory boards within the governance system?– Recognising the broadening role and delegations of advisory boards, and increasing pressure on governance boards. How does best practice need to evolve?

The Best Practice and Ethics Advisory Board (BP&E Advisory Board) will consider the impact on the Code of Ethics and Best Practice Frameworks throughout the year.”

Members of the BP&E Advisory Board?include?Sandra Gamble ?(Chair),?Stuart Allinson ,?Dr Elizabeth Armstrong ,?Jane Beaumont ,?Nigel Hennessy ,?Dr Michael Drew ,?Janelle van de Velde ,?Eduardo Esteva ?and?Louise Broekman .??

Louise Broekman, Chair of the Global Research Council, the research division of the Advisory Board Centre, states “we encourage the market and professionals within it to share their current opinions with us for our living research, so we can table the breadth of experience and views for consideration”.

Individuals and organisations seeking to provide input into the ethics agenda of advisory boards, please contact?[email protected]