The association has grown from a group of a few dozen individuals to an association of over 600 business leaders and non-executive board directors. The Directors’ Institute of Finland is today a highly respected and influential body, whose individual and corporate members and associated professional experts form a solid network of professionals involved in corporate governance and other business leadership issues. The association is a well-established participant in the development of Finnish business and society. The association is also a part of the European Confederation of Directors’ Associations (ecoDa).
The changing business environment
The business environment and global economy have changed considerably during the last ten years. The role of corporate boards of directors has grown in importance. Regulation and corporate law as well as broader stakeholder engagement have increased significantly. The role of corporates as enablers in society and welfare are also accepted.
As a consequence, the work and responsibilities of corporate boards of directors are more demanding. Board assignments require more focus and work than ten years ago, and shareholders increasingly require more professional skills and understanding of regulation from their representatives. In addition, the substantial increase in membership of the Directors’ Institute of Finland has created new opportunities as well as demands for further development of the association.
A new direction for the Directors’ Institute of Finland
The above-mentioned significant changes and demands led the Board of Directors to revise the mission of the association in the last half of 2011. It was noted that Finland needs a strong player to develop corporate governance practices and standards, and that the Directors’ Institute of Finland can fulfill this need. The association now takes a more public role in promoting corporate good governance practices in general and thus better supports the development of the professional skills of its members.
The Board of the association has numerous ideas for the development of its activities. These demand significant efforts, but the association has limited resources. However, there are many other participants in the field, and there is no reason to build overlapping capabilities, as networking and collaboration with through affiliation are more effective. This is why the Board has focused on strengthening the core activities of the association. There are numerous actors in Finland who have both the resources and ambitions to promote the same issues as the Directors’ Institute of Finland. Through collaborating with these, we can use our existing resources more effectively to serve and promote the interests of our members.
The most significant institutional shareholders in Finland, pension insurance companies Ilmarinen and Varma, and state holding company Solidium Oy, have expressed their strong support for the Directors’ Institute of Finland became corporate members during the course of the spring 2012. Later, pension insurance company Elo joined the association. Similarly, all “Big Four” auditing and professional services companies (PwC, E&Y, KPMG and Deloitte) have joined our network of professional advisers. These corporate members and expert advisers provide the association with access to the leading expertise on corporate governance issues in this country. They also serve to enhance our visibility and role as national spokesman and opinion leader on corporate governance.