The guardianship circle: praxis of governance and audit committees
Why is the practice of corporate governance so different from best practice standards? Effective corporate governance “in practice” is fluid, context-specific and depends on practitioners’ skills, initiative and adaptation.
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As anyone who has served on a board knows, what happens in practice in company boardrooms can be far different from best practice corporate governance standards, such as those promulgated in the Financial Reporting Council’s (FRC) UK Corporate Governance Code. Why is the practice of corporate governance so different from best practice standards?
The practice of corporate governance
We use the umbrella term, “the practice of corporate governance”, to refer to: (i) corporate governance best practices (i.e., social norms and rules, best practice); (ii) practitioners (e.g., chairmen, executive directors, non-executive directors, internal
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