CCL Industries Inc.: Building and Maintaining an Effective Board
(8 pages of text)
CCL Industries Inc. is one of the top packagers of consumer products in the world. Over its 50-year history the company had grown from a small room to a multinational firm employing 7,500 people with over $1.6 billon in sales. CCL faces an uncertain environment that had already led to a major strategic reorientation when its plan to sell its largest division was cancelled. A global economic slowdown and lower consumer confidence coupled with extensive international operations, significantly increased the risk to CCL's sales and already slim profits. In the past, the company prospered through product diversification gained through acquisition. The economic slowdown and increased uncertainty meant that this strategy may not be appropriate in the future. The chief executive officer recognizes the time, attention, advice, composition and operations of the board of directors would likely have to be altered to reflect this new reality.
The case highlights activities of the CCL CEO, board chair and board to improve the operations of the board, increase and ensure management accountability and improve the advice and counsel the board provided to management. Because CCL’s efforts correspond to elements that are typically taught in courses on corporate governance, this case is suitable for a concluding class.
Canada, Large, 2002
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