The shift to integrated reporting may not be easy, but Richard Howitt of the International Integrated Reporting Council argues that if we are to create long-term value, it is crucial to embed it as a key governance principle.
Over the past couple of years, a number of countries have established new codes or announced plans to review the status quo in corporate governance—something that is encouraged and welcomed by the International Integrated Reporting Council. But why such changes? In reality, is this what boards are really focusing on? And how can we ensure reforms underpin the reality of how a board functions?
The "integrated reporting" answer to these questions is that corporate governance needs to enable a company to run to its full potential, creating value for itself and for others, both now and in the future.
Ask any board member to list what’s
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The special committee's investigation into governance issues highlighted by the Carlos Ghosn affair reveals a corporate culture that allowed the "concentration of authority" in the CEO and a board that felt unable to ask the necessary questions.