It is impossible to be among the living today and not be aware of
issues of accountability and corporate governance that are being
reported in the business press. There has been a true failing in America
of these issues of corporate morality! Of course, stories of Enron and
Arthur Anderson come to mind, but I don't think they need to stop there.
All of us who are responsible for running our own businesses, even
though privately owned, need to be reminded of our accountability.
Commerce National Bank and its holding company, CNBC Bancorp, are
public companies and as such are required by regulation to have monthly
board of directors meetings. While I sometimes believe that having these
meetings each month is too often, they certainly do remind me that I
have to report and explain the bank's performance to a larger body than
just our management.
There is a desirable pressure on an individual and to an organization
to be held accountable for our company's performance. While we each have
a large financial interest in our company's results, there is sometimes
a tendency to let things rider that we would not if we felt a sense of
accountability to some other body.
I regularly remind my customers of the value of an active board of
directors or advisory board. I encourage them to set up scheduled
meetings with specific agenda items each quarter that require
accountability and an honest evaluation of efforts being made in their
businesses. At the very least, schedule a meeting annually with your
accountant, lawyer, and banker to review the past year and plan for the
new year. Make yourself be held accountable. It is good discipline for
each of us.
