Breaking the rules may be the best thing for your company

In this video, Professor Pablo Foncillas analyzes corporate governance standards compliance in companies. "We've been sold the idea that the best companies are those that follow the rules to the letter," he suggests. What happens to those that choose not to fully comply? Are they simply corporate rebels, or have they discovered something that others ignore?

Just as one looks out of place in a suit at an informal wedding, "something similar happens with companies that blindly try to fit into the rules of corporate governance without considering their own context." On boards, there is a risk of over- or under-conforming, creating a board in one way or another. Having more independents than recommended or a rigid structure in which dominant shareholders and power structures limit their independence.

Do these situations pose a problem for companies? What's so great about the proposed options? The answer is in the video.