Tags: Corporate governance
Response of the Institute of Business Ethics to the Financial Reporting Council conultation on Proposed Revisions to the UK Corporate Governance and Stewardship Codes.
Governance is an important part of the way in which this can be achieved. The challenges around governance are also evolving as companies seek to address the trust deficit that has come into sharp focus since the global financial crisis ten years ago. Nowadays directors must be concerned not only with the processes around accountability, strategic decision-making and risk oversight. They must
also learn to understand and shape the drivers of behaviour within their organisation and consequently its impact on society.
All of these are important issues for the IBE and we are therefore grateful for the opportunity to respond to this consultation. This iteration of the Code is taking place against the background of a sharply different political and business climate compared with previous times. The FRC has rightly therefore sought to broaden its scope in places, and we welcome the fact that it has consulted widely
on the need for change.
Getting the right language in place is a delicate task, however, and in some important areas more work may be needed to get the drafting to a point where it commands the broad consensus support on which the Code depends to be effective.