RIT Expert Examines What’s Next for Governance Reform

The recent ouster of Richard Grasso as chairman of the New York Stock Exchange intensifies the debate over corporate governance. Reform efforts initiated in the wake of previous scandals like Enron, WorldCom and Global Crossing are now well documented. But are they getting the job done?

Eugene Fram, the J. Warren McClure Research Professor of Marketing at Rochester Institute of Technology’s College of Business, will address that issue during the seventh biennial J. Warren McClure Lecture. His presentation, It’s Not Over for Business and Nonprofit Board Directors, will be at 3:30 p.m. on Tuesday, Oct. 16, in the Chester F. Carlson Center for Imaging Science auditorium on RIT’s Henrietta campus.

The current revolution in governance reform may be more perception than reality. While many organizations have taken steps to address issues such as internal financial control, internal and external financial communications, and codes of ethics, Fram says his research indicates that this is only scratching the surface.

“All of this adds up to modest change in board environments,” he argues, “at a time when most people assume a great deal is happening. What we are seeing is a lot of ‘business as usual.’”

During his lecture, Fram will analyze two important governance issues that, he believes, are being overlooked. He will also identify what the business and nonprofit worlds need to do in order to achieve broader governance reform.

Albert Simone, RIT president, and Michael Morley, executive vice president and chief administrative officer at Eastman Kodak Co., will offer brief responses to the lecture. A question-and-answer session and reception will follow.

Fram has served on many business and nonprofit boards. His nonprofit board model, The Corporate Model, has been adopted by thousands of nonprofit organizations. Most recently, he served as co-chair of the Alliance for Children and Families, a national organization of 300 human service agencies with total budgets in excess of $2 billion. Together, these agencies serve 5 million people in 2,000 communities.

To attend the J.Warren McClure Lecture, contact Donna Slavin at RIT’s College of Business at 585-475-2199 or dlsbbu@rit.edu.

NOTE: Rochester Institute of Technology’s College of Business is recognized nationally as a leading provider of career-oriented business education, offering undergraduate and graduate level programs in accounting, finance, international business, management, management information systems, marketing, and photographic marketing management. U.S. News & World Report ranks RIT’s College of Business among the top undergraduate business programs in the country.