From the case study of TECO it was evident that vast majority of director on the board of the company was internal and less number of the director were external and because of the sufficient independent director it is hard to communicate and even they do not know completely about the company situation because of that it is hard to implement adequate risk management measures despite earlier warnings of disaster were less questioned and criticised in the boardroom .
Each and every company must have an accountability towards its stakeholder’s local community and general public. because of lack of accountability the public interest and trust towards the company is decreasing. thus, structure of the board had been hugely responsible for the poor corporate governance which in turn led to the failure in 2011.
How do you account for the discrepancies between the company’s alleged concern for corporate governance on its website and the catastrophic failure?
The company’s corporate governance on their website seems to be window dressed making external show of sound corporate governance principle and practise to minimize failure and hiding company’s weakness (Tricker,2015). The corporate governance of the company was clearly deteriorated. there were no adequate security measures taken to minimize the failure.
In addition, the mistake that the company does not have to repeat is it has to learn from the earlier mistake falsifying safety tests in 2002 and concealing public interest information of radioactive water leakage due to the earthquake in 2007. The company also do professional negligence and thus risked human life and environment.
What advice would you give to the chairman of tepco?
I would advise the chairman of taco to set good corporate governance practise for instance consider the appointment of a lead independent director- the person who acts as a passage for any voice raised by independent director on the board .if they are forming their internal audit committee they should have a controlling body having experts from outside the organization who can look after their findings and give proper suggestion accordingly. The company needs to concentrate towards csr so that they can conduct their activities in such a way that it can provide benefit to all the stakeholders without affecting them as well as environment .they should do well to implement the best possible risk management policies and make sure that they have independent directors on their boards those are capable of handling of management decision