Despite the government’s U-turn, there remains a good case for companies to bring employees into the boardroom, says Janet Williamson of the TUC.
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Through the debate on the government’s corporate governance proposals, a clear consensus has emerged that boards must invest in engaged relationships with their workforce and other stakeholders in order to deliver long-term, sustainable growth. It is the job of the corporate governance framework to ensure that this happens.
On becoming prime minister, Theresa May promised to reform this framework by putting workers on company boards, acknowledging that non-executive directors are “drawn from the same narrow social and professional circles as the executive team”, and the scrutiny they offer is “just not good enough”.
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