Coded explanations
The UK’s “comply or explain” governance code is widely hailed as a success, but the quality of explanations is open to question. Philip J. Shrives leads us on a tour of the problems.
A Bank of England report in the late 1980s examined the possibility that the UK’s corporate governance was not quite as strong as countries such as Germany or Japan.
As a result, the Cadbury Committee was formed and its subsequent report, produced 23 years ago, has had a profound influence on corporate governance (and indeed other systems) throughout the world.
A key aspect of this report was the celebrated "comply or explain" system. Based on the idea that "one size did not (necessarily) fit all", the
Like this article? Sign up to our newsletter to get more articles like this delivered straight to your inbox. For thoughtful journalism, expert insights on corporate governance & an extensive library of reports, guides and tools to help boards & directors navigate the complexities of their roles. Subscribe to Board Agenda Subscribe Here
Related Stories
-
Flexibility is key for the digital boardroom
Boardrooms need a secure and foolproof approach to managing sensitive company information, says Mark Edge, UK MD of Brainloop.
-
ESG: is it truly being integrated with investment decisions?
Responsible investment is a critical step in the move towards sustainable economies. But are asset owners and managers really integrating ESG principles into their practices?
-
Ten simple ways boards can manage their risks better
Follow these ten tips on risk management and you'll be well on your way to preventing corporate disaster.
