Read Simon Lowe’s expert commentary on the FRC’s proposal for a revised UK Corporate Governance Code.
Simon Lowe, Partner and Chair of the Governance Institute at Grant Thornton UK LLP, commented:
“The Financial Reporting Council’s (FRC’s) proposals are certainly a step in the right direction in developing a Corporate Governance Code which is fit for purpose and more representative of a modern economy. If the business community is to regain the trust of the wider communities it serves, maintaining a set of principles which encourage best-practice is certainly a good place to start.
“In particular, we wholeheartedly support the new Code’s recognition that culture, purpose and engagement beyond shareholders is central to effective leadership. Collaboration with all stakeholders is fundamental to innovation and achieving better outcomes for everyone, and it also drives transparency and trust.
“However, we know that regardless of how the Code may change, it is individual businesses taking ownership of their governance practices and creating a strong culture which percolates from the top that will really make a difference.
“Ensuring trust and integrity are at the heart of our economy is now more crucial than ever, to enable a vibrant post-Brexit economy to emerge over the coming years.”