When they report in 2019, UK private companies of a certain size will have to explain their governance arrangements in greater detail than before.
Boards are expected to manage an ever-evolving list of responsibilities. Having boards more immersed in different areas of concern is very much welcomed but the challenge of staying focused on their core responsibilities must be addressed.
In 2016, during her campaign for the leadership of the Conservative Party, Theresa May spoke about “making Britain a country that works for everyone, not just the privileged few”. To achieve this, she proposed requiring listed companies to appoint employee representatives on the board.
Red flags that could be indicators of potential negative consequences for the company's long-term prosperity and shareholder value creation.
Shareholders lean on audit committees to be their representatives in discussions with the auditors. Around the world, there are concerns whether audit is fit for purpose and effective in responding to the needs of shareholders and other users of corporate reporting.
Banks are shifting away from viewing climate change risks solely as a corporate social responsibility issue, as they understand their financial implications.