The latest issue of of Corporate Secretary (the magazine for corporate secretaries, general counsel and governance professionals in North America) provides an overview of the Ombuds function and explains why Ombuds effectively supplement formal reporting and compliance programs. The article features comments from Jonathan McBride, a corporate governance consultant and president of McBride Associates, and Robert Tannous, an attorney with the law firm Porter Wright.
McBride explains why the fear of retaliation makes Ombuds so important for corporations.
McBride says the root of the problem is that companies ‘have one cohort of directors who are terrified of what they don’t know, and on the other hand there are employees that know things and don’t know who to turn to when faced with an ethical issue.’ In cases such as these, an organizational ombudsman can help a company and its directors set the appropriate tone at the top regarding how such issues are to be dealt with.
The article was written by Aarti Maharaj. (Corporate Secretary via Business to Community.)
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