The best way to understand and harmonize the divergent interests of all stakeholders is through a shared commitment to policies and decisions that strengthen the long-term prosperity of a company”. [...] We recommend that all recipients of government support should commit to declare their core purpose in line with the FRC’s recommendations – explaining what the company does, and how it does it – and commits to holding themselves regularly to account for the delivery of the declared purpose. [...] The UK Corporate Governance Code highlights that Boards should understand the views of the company’s key stakeholders, outside of shareholders, and describe in the Annual Report how their interests and the matters set out in section 172 of the Companies Act 2006 have been considered in board discussions and decision-making. [...] As part of this scrutiny, companies are having to demonstrate that the burden, or reward, is being shared collectively to the extent possible – from the CEO to the most junior employee – and that they are putting in place appropriate mechanisms of transparency and legitimation. [...] How can the Government borrow and/or invest to help the UK deliver on these principles? Following on from our first answer we urge the government to enshrine these principles in its own investment programme – to declare the purpose in whatever it proposes and hold itself to account for its delivery, just as companies are required to do under the UK Corporate Governance Code and Strategic Report Gu.
- Pages
- 8
- Published in
- United Kingdom
