If it's not built into your governance, it's not built to last
Why optics won’t protect your bottom line
Profit isn’t a dirty word. But it does need to be designed.
This week’s headlines serve as a warning shot for anyone confusing optics with impact. At Builder.ai, governance wasn’t just weak — it was actively bypassed. Seven hundred engineers did the work of a supposedly “AI-native” platform. Fake revenue. Round-tripping. And a boardroom that didn’t ask the right questions.
This wasn’t a branding issue. It was control failure, packaged as hype.
Meanwhile, CFOs say they want to harness AI for decision-making. But most don’t trust their data. Forbes calls it an ambition-execution gap. I call it a governance gap. If your controls aren’t ready, your AI isn’t either.
And it’s not just private companies under scrutiny.
The US Department of Energy — yes, the DOE — is starting to treat ESG as national infrastructure. Not as a tick-box exercise. Not as a reputation buffer. But as a lever for competitiveness. It’s a stark contrast to firms still framing ESG as an optional extra.
Which brings us to Airbnb.
The platform reversed its 2018 commitment to remove listings in occupied territories. It’s now listing properties in the West Bank again — despite reputational, legal and investor pressure. This isn’t a values debate. It’s a risk one. If your governance can’t navigate complexity, it’s not governance — it’s a blindfold.
It doesn’t have to go this way.
Companies like Ørsted have shown what’s possible when governance is forward-facing. Their pivot from fossil fuels to renewables wasn’t just a sustainability win — it tripled their market cap. But it was only possible because the board redefined risk, asked harder questions, and backed strategy with structure.
That’s what good governance looks like. Not compliance. Not committees. Courage. Clarity. And controls that do more than tick boxes — they drive decisions. If your governance can’t navigate complexity, it’s not governance — it’s a blindfold.
In Profit by Design, we outlined five places where governance delivers financial upside: market access, capital efficiency, cost control, workforce retention and brand trust.
So here’s the test:
Do you review sustainability risks with the same rigour as financial ones?
Are control failures called out — or quietly worked around?
Does your board challenge narratives that are too good to be true?
When was the last time you pressure-tested growth assumptions against real-world constraints?
Because governance isn’t a backdrop. It’s your scaffolding. Without it, growth collapses under its own story.
If your board wants sustainable growth, governance isn’t the blocker. It’s the enabler.
And if it’s not built into your governance, it’s not built to last.
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