China's Place on the Board Agenda
from September/October 2007
Here’s the extent to which more than 100 directors get involved in their company’s China strategy—and how much they leave to management. The responses are from a survey conducted by Deloitte Chinese Services Group, a member of Deloitte & Touche USA LLP, and Global Navigation, a sister company of Corporate Board Member . The respondents also evaluated their board’s know-how about opportunities in China, among other things. Excerpts:
| Board Sign-Offs | Board Updates | Objectives | Pursuing Board Excellence | Show Me the Money |
| How often does management submit its China investment strategy to the board for approval? | How often does management report to the board on the company's activities in China? | What is the main purpose of the company's China strategy? | 16% of the respondents rate "excellent" their board's understanding of opportunities in China, | Asked to describe how their company would make direct investments in China, |
|
Every year
63% |
Every board meeting
38% |
To increase sales inside China
46% |
24%
give the same rating to their board's ability to question management assumptions about those opportunities, and |
29%
say they'd be in wholly owned subsidiaries and |
|
Once a year
19% |
To increase manufacturing or assembly there
25% |
18%
say their board's readiness to address China-specific M&A risk is excellent. |
22%
say the investment would take the form of a controlling interest in a China-based company. |
|
|
Never
9% |
To shift production capacity to China
18% |
