Chronicles from the Boardroom. A Romanian Perspective. Volume 1

FOREWORD

With governance being the critical issue of our day, the Romanians have emerged as world leaders providing latest training and development for boards and directors. More than ever innovation, regulation, and global responsibility intersect, making boards and directors ever more essential as the guardians of our institutions. Thus we require our leaders to be at the cutting edge of thinking and performance to navigate today’s complex business landscape.

Henley Business School designed the very first-degree programme to develop Directors as outstanding global leaders. The Master of Arts, Board Practice and Directorship (MABPD) was eagerly adopted by Envisia – Boards of Elite the unique private business school of Romania specialized in board and governance programmes.

The research presented by the first cohort of graduates from the Henley MABPD marks a milestone for Romania, offering fresh perspectives and practical solutions for key issues facing boards today.

This inaugural group of ten Romanian graduates and their master theses have set a new standard for corporate leadership through their pioneering research. By integrating global governance standards with the specific needs of Romanian industries, they have explored themes such as AI governance in banking, the impact of board reputation on executive teams, and broader challenges like CEO-board collaboration, succession planning, recruitment, diversity, and ESG practices. Their work provides a rich framework for navigating the complexities of a modern board.

What distinguishes this collection of perspectives is its balance between theoretical insight and practical application. The research delves into critical issues like net-zero goals and AI integration, offering forward-thinking strategies for Romanian boards to enhance stewardship, manage risks, and promote sustainability. These theses provide a blueprint for shaping future directorship, ensuring responsible and impactful corporate governance.

I with Envisia trust that the insights presented here will not only inspire future directors but also encourage the wider corporate community to adopt best practices, lead with integrity, and contribute to sustainable governance.

This collection of evidence-based contributions is the first in a series of unique perspectives critical to enhancing the performance and contribution of Romanian and global board members.

Andrew KAKABADSE
Chair Envisia Boards of Elite
Professor, Governance and Leadership – Henley Business School

PREFACE

I wholeheartedly recommend „Chronicles from the Boardroom – A Romanian Perspective”, Volume I as an essential and practical read for anyone interested in the intricate dynamics of boards and corporate governance. This comprehensive compendium of papers offers invaluable insights into the unique challenges and opportunities faced by boards in Romania, while also drawing parallels to global boards and governance practices.

Each contribution is thoughtfully curated, providing readers with a rich tapestry of knowledge and practical wisdom that is both relevant and timely.

Whether you are a seasoned board member or an aspiring one, a corporate governance professional, or a board consultant, this book will equip you with a deeper understanding of the critical role boards play in shaping organizational success. It is a remarkable addition to the international literature on board practice and corporate governance, providing a Romanian perspective, that will inspire ongoing dialogue and reflection in the field.

Gabriela HARTESCU, PhD
Dean & Founding Member, ENVISIA – Boards of Elite
Visiting Fellow, Marketing and Reputation – Henley Business School

CONTENTS

CEO – Board Engagement for Net-zero. A case study of five airlines in Central Eastern Europe (Anca APAHIDEAN) 13

Directors Stewardship best practice for AI in the Romanian Banking Industry (Mircea BUSUIOCEANU) 32

Board Directors perception of their risk appetite in exercising stewardship (Simona CONSTANTINESCU) 54

Family business founders response to the demands of their own succession: an exploratory study in the context of Romanian family-owned businesses (Adrian FLOREA) 89

Business Challenge. How do entrepreneurs plan for the future post their succession (Radu HANGA) 107

Boardroom succession practices by BKR International EMEA (Iulia LASCAU) 125

How Board Directors more effectively prepare for listing on the Bucharest Stock Exchange. Research challenge (Adriana LOBDA) 138

Qualitative Considerations on Private Equity Funds. Non-Executive Directors Board Selection and Recruitment Process (Carmen-Daniela MICU) 166

Board reputation impact the executive team and its effects on organizational performance (Marilena POPOVICI) 192

Implementation of the Women on Boards Directive in Romania: A Multi-Stakeholder Perspective (Alina PRAHOVEANU) 210

SHORT BIOGRAPHIES

Professor Andrew KAKABADSE
Chairman of the Director`s Forum,
Professor of Governance and Leadership at Henley Business
School – University of Reading,
Chair of the Board, Envisia – Boards of Elite.
Profesor Andrew Kakabadse has published 45 books and over 250 articles, including the bestselling books: The Politics of Management, Working in Organisations, The Success Formula and Leadership Intelligence: The 5Q`s. His areas of expertise are the following: Strategic Leadership, Profiling (for board members and top management), Board Dynamics and Performance, Governance and Public Policy, Coaching. Over the years he has been an advisor at government level (British, Irish, Australian governments, etc.), to major financial institutions (Citi, Bank of America, NatWest Bank, RBS, Bank of Ireland, etc.) and large corporations (BMW, Ford, British Airways, Lufthansa, Swedish Post, Severstal /Russia, Heidrick & Struggles, KPMG, etc.). He has also been a consultant to several UN agencies, the World Bank, charities and health organisations, police structures etc. Andrew Kakabadse is listed in Who’s Who and is a life member of the Thinkers50 Hall of Fame. He is a Fellow of the European Academy of Science and Arts, the British Psychological Society, the British Academy of Management, and the Institute of Chartered Secretaries.

Filipe MORAIS, PhD
Lecturer in Governance, Resposibility and Ethics,
Henley Business School – University of Reading
Programme Director of the MSc in Management for Future Leaders
Dr Filipe Morais teaches corporate governance, responsibility and ethics at Henley Business School and Catolica-Lisbon School of Business and Economics. He is the Program Director of Henley`s MSc in Management for Future Leaders. Dr Morais publishes widely on corporate governance matters and his new book "Handbook of Corporate Governance in Family Businesses" is due in Spring 2025. He is a columnist for major newspapers in Portugal, writing about governance, ethics and innovation. He is also Partner – Board Services, at AMROP, Lisbon office.

Gabriela HARTESCU, PhD
Dean & Founding Member, Envisia – Boards of Elite
Visiting Fellow, Marketing and Reputation,
Henley Business School – University of Reading
Gabriela Hartescu is the Dean and a founding member of Envisia – Boards of Elite. She has over twenty-five years of experience in the field of professional training and academic education in finance and banking, having held leadership positions and responsibilities in various organizations, both in Romania and at the European level. Currently, Gabriela Hartescu is the Chair of the Academic Committee at the International Association for Sustainable Economy and a Visiting Fellow on Marketing and Reputation at Henley Business School. She is a member of various professional associations such as: Chartered Institute for Securities and Investment UK, Association of the Romanian Financial and Banking Analysts and Association of Independent Administrators. She is often invited as a speaker at numerous conferences and industry events. Gabriela Hartescu holds a PhD in Finance from the Academy of Economic Studies Bucharest.

Nada KAKABADSE
Professor of Policy, Governance and Ethics,
Henley Business School – University of Reading
Dr. Nada K. Kakabadse is Professor of Policy, Governance and Ethics, Henley Business School, University of Reading and Visiting Professor at US, Australian, French, Israeli, Kazakhstani and Chinese universities. She is elected member of European Academy of Science and Arts (EASA). She has published over 250 scholarly articles, 23 books and over 130 chapters in international volumes. Her current interests are boardroom effectiveness and diversity, governance, leadership, ethics, ESG, technology impact, and the policy design of the State. She is also a consultant to major global corporations, third sector organisations and governments and sits on international boards. She is a member of the Governing Council of the Empress Theophano Foundation.

Nadeem KHAN, PhD
Programme Director, MA Board Practice and Directorship,
Henley Business School – University of Reading
Dr Nadeem Khan`s focus is on boards, top team dynamics, strategic behaviour, governance innovation and resilience of organisations for sustainability across the private, public and third sectors. Nadeem Khan is a lecturer in governance, policy and leadership and is Programme Director of the MA in Board Practice and Directorship. He completed his PhD research on the strategic behaviour of firms at Henley Business School. Prior to this, he gained more than ten years` professional experience in the UK and internationally and was managing director of his own business. His current research interests include: the strategic behaviour of corporate firms; institutional, corporate and citizen stakeholder relations; governance effects on policy innovation; global governance agendas; public and private board leadership disciplines; board and top team dynamics; board digital engagement; ethics and CSR; sustainability at times of crisis and in volatile environments; and government-business-third sector responsibilities within society.