A survey by the Institute of Directors Ireland has found that 60% of its members see personal or reputational risk as the main deterrent to sitting on a state board.
The survey was undertaken between February 20 and 29 during which time the Chair of the board of RTÉ, Siún Ní Raghallaigh resigned from the role.
Caroline Spillane, IoD CEO, acknowledged that respondents to the survey were "possibly" influenced by coverage of governance issues at the broadcaster.
"There was plenty in the public domain and there was a high level of awareness of governance issues," she told Morning Ireland.
"I think if we had run this survey this time last year, things like time commitment and remuneration would have arisen as being higher priorities or maybe things that would deter people from going on a state board. This time reputation has arisen as being the top reason."
Ms Spillane said serving on a state board is both a privilege and a significant undertaking, and "it's not a bad thing" that people are aware of the risks involved.
"People have functions around governance, strategy and risk management, internal controls and influencing culture, and people need to be aware of that when they take on these kinds of duties and functions, and so it's no wonder that reputation and personal risks that would arise as being concerns and things that might deter them in considering an opportunity," she said.
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When asked if they would consider applying for a position on the board of a state body, the survey nonetheless found that nearly 72% of directors and business leaders would still consider applying for a state board position.
The sentiment towards the Code of Practice for the Governance of State Bodies amongst directors is mostly positive, with almost 73% saying it has been effective in supporting good corporate governance standards in state organisations and nearly 74% saying it has improved governance standards since its revision in 2016.
The survey was completed by 382 directors and business leaders and represent a wide range of businesses including State or semi-State bodies, not-for-profit organisations, private sector SMEs and plc/multinationals.
"And while there was a largely positive perspective offered by respondents on the value of having a Code of Practice in place, several respondents voiced the need to review its oversight, accountability, and implementation. There were also concerns raised on the recruitment process to state boards, in respect of the relevant experience and skills. Directors also expressed the desire for the code to be revised to reflect the latest in governance developments."
Ms Spillane said IoD Ireland will be conducting further research with directors and members with the aim of providing practical recommendations to help support the Government in further enhancing the governance of State agencies.
"This new survey will also inform our learning and development strategy for members and board directors who currently sit or are interested in sitting on state boards."
