By: Alison Gill
Alison Gill
Nearly two decades since the creation of the first Corporate Governance Code, board accountability has evolved to place much greater emphasis on empowering directors to create the right culture and behaviours to navigate new social and environmental challenges. Even five years ago, corporate governance was quite retrospective – boards more interested in looking back over their financial performance than worrying over the impact of; the environmental agenda, cyber security and disruptive technologies. Article by Alison Gill, CEO – Bvalco.
These days, if you go to a board meeting the breadth and depth of the issues being discussed has increased. There is much greater emphasis on the long-term sustainable success of the company and ways to make the organisation more entrepreneurial, to stay ahead of disruptive threats and improve the customer and employee experience. All of which is being discussed in a way that isn’t just about generating value for shareholders, but also contributing to wider society. In part, this is due to revisions that have been made to the Corporate Governance Code, which aims to promote transparency and integrity in business. Operated by the Financial Reporting Council, it sets the standard for corporate governance in the UK and was strengthened after Sir David Walker’s review of the 2008 financial crisis, to encourage boards to raise their game even further. Since then, the code puts much greater emphasis on the culture driving the behaviour and ethics of the organisation, requiring boards to be externally reviewed every three years, or explain their reasons for not wanting to do this.