Creating a Culture of Integrity

In this keynote address delivered to participants at the 2011 Ascendant Compliance Conference, CFA Institute Board of Governors Vice-Chair Alan Meder considers the value of integrity to the capital markets, while developing a powerful rationale for instilling a culture of integrity at asset management firms.

Was Granduncle Wiener Also Thinking About Governance…Not Just Cybernetics?

Actually it was my own grand-uncle, Norbert Wiener, who is the MIT professor Dr. Turnbull refers to in his paper (in the previous post)as the father of cybernetics, the core concepts upon which automated device and computers are based. Wiener thought cybernetics could also be applied in other areas, such as society in general. A key aspect of cybernetics was the stablizing or destablizing effect of feedback loops.

Re-Inventing Governance Using the Laws of Nature (Cybernetics/Network Approach, by Dr. Shann Turnbull)


Over billions of years nature has evolved sustainable systems of governance based on survival of the fittest. Living creatures cannot sustain their existence without self-regulation and self-governance. This was achieved before the existence of humans, their governments, laws, regulations, regulators, codes, auditors, independent directors, rating agencies, law courts and manifold layers of experts, advisors and even meetings like we are having today!

Report of the Working Group on ESG Factors in Corporate Valuation (Securities Analysts Association of Japan)

The Working Group believes that market efficiency can be enhanced by encouraging financial analysts to pay attention not only to conventional financial factors but also to non-financial factors such as environmental, social, and governance (ESG) criteria and thereby evaluating true corporate value. Thus, we conducted a statistical analysis of the relationship between corporate social performance (CSP) and corporate financial performance (CFP).