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Corporate governance is in crisis, and it's a handbrake on prosperity

Corporate Australia’s governance failures and risk aversion are stifling investment, innovation and growth. Fixing it demands bold reform and national urgency.

Ben Power Ben is a financial and strategic communications advisor and writer.
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Corporate governance is plagued by excessive regulation, box-ticking compliance and an insular directors’ club which lacks the skills and appetite for prudent risk-taking, Ben Power writes. Shutterstock.

Corporate Australia is in crisis. Governance failures, risk aversion and a culture of complacency are stifling investment, innovation and economic growth.

Recent controversies — including the stoush over ASX governance principles, boardroom battles at MinRes, and scandals at Cbus Super, AustralianSuper and WiseTech Global — have dominated headlines in the business media.

But these scandals are symptoms of a broader problem. One that, if left unchecked, threatens to scorch the economy. Tackling it requires a national, collective effort.

The stakes couldn’t be higher. At a time of global uncertainty, amid Trumpian chaos and a challenged China, Australia should be focused on building a dynamic, resilient, and innovative economy.

Ideas is where we publish opinion and analysis from external contributors on the most important topics in the new economy.