Skip to content

25 September, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • News round-up: this week in governance

      Lonely leadership; how governance helps in a crisis; Kerrie Waring to depart ICGN; ESG and...

    • say-on-pay votes Say-on-pay votes lack link to sustainability

      Very few investors use their AGM votes on executive pay as a spur to improve...

    • fast-moving threats ‘Fast-moving threats’ will soon challenge boards, warns CIIA

      Resilience will be required to face a ‘poly-crisis’ of immediate and simultaneous risk issues, internal...

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • sustainability into finance

      How to integrate sustainability into financial decision-making

      Proactive leadership and board commitment are essential to transform notions of sustainability into fiscally viable...

    • reporting requirements

      Don’t let reporting requirements lead to boilerplate disclosures

      We must balance the need for disclosure of non-financial information so that it is sufficient,...

    • policy on human rights

      Why you need a policy on human rights

      As well as being the right thing to do, this element of a sustainable business...

  • Comment
      • View all
    • reporting requirements

      Don’t let reporting requirements lead to boilerplate disclosures

      We must balance the need for disclosure of non-financial information so that it is sufficient,...

    • CEO talent Can high CEO turnover boost gender equality?

      The trend for boards favouring internal pipelines for CEO succession creates an opportunity to nurture...

    • trust matters Ignore trust at your peril

      Consumers and employers expect ethical corporate behaviour—and will vote with their feet when trust is...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • helle bank jorgensen Helle Bank Jørgensen on governance, ESG and how board directors can become stewards of the future

      In spite of ESG toxicity in the US, she remains optimistic that companies are working...

    • information resilience IT transformation sees boards moving to ‘continuous’ management

      Data analytics available on demand requires a resilient—and selective—approach to sharing information, a webinar panel...

    • life sciences podcast Reform of NHS levy ‘harms UK competitiveness’

      Boards in the pharmaceutical and life sciences sector face increasingly difficult decisions, according to a...

  • Careers
      • View all
      • Selection
      • Board Moves
    • CEO talent Can high CEO turnover boost gender equality?

      The trend for boards favouring internal pipelines for CEO succession creates an opportunity to nurture...

    • Starbucks sign outside shop in Warsaw, Poland DEI policies are targets for litigation, warns US lawyer

      Right-wing activists will continue to sue corporates over diversity, equity and inclusion policies they perceive...

    • CEO churn CEO churn is highest since 2019

      Chief executive appointments in the FTSE 100 are also up—but only 27% of incoming CEOs...

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • G20/OECD Principles of Corporate Governance 2023 cover

      G20/OECD Principles of Corporate Governance 2023

      The G20/OECD principles help policy makers improve the regulatory and institutional framework for corporate governance.

    • stakeholder engagement

      Director Reference Guide: Stakeholder engagement

      Board Agenda's 'Director Reference Guide' for boards on building an honest and trust-based relationship with...

    • IoD Are boards losing control report cover

      Are Boards Losing Control? 2023

      This IoD Centre for Corporate Governance report looks at the biggest challenges facing companies over...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

Investors: revised code ‘too narrowly’ focused on workforce engagement

by Gavin Hinks on March 7, 2018

The Investment Association has told the UK’s governance watchdog that its revisions of the country’s corporate governance code is too focused on the workforce and that board engagement should focus on “material stakeholders”.

boardroom, chairman, chair

Image: Shutterstock

Proposed revisions to the UK’s corporate governance code focus too narrowly on workforce engagement, according to a major body representing investors.

The Investment Association, which represents investors with £6.9trn in assets under management, has told the UK’s governance watchdog that revisions that would see boards pay more attention to the views of workers departs too far from director’s duties as set out in UK law.

In a submission to the Financial Reporting Council on a revamped code, the Investment Association said that it was “concerned that the revised code focuses too narrowly on workforce engagement, and moves away from the established duties of directors as set out in law, to make decisions for the benefit of all members while taking account of the long term and other stakeholders.”

According to the association, the revised code should recognise that stakeholders are broader than the workforce…

The association wants the code to more clearly reflect the duties set out for directors in section 172 of the Companies Act. 

According to the association, the revised code should recognise that stakeholders are broader than the workforce, and added that engagement should focus on “material stakeholders”.

It also calls on the code to “recognise that there is a distinction between board engagement and board understanding of the views of stakeholders”.

The Investment Association said that provision in the new code relating to the independence of board chairs required further examination. Provisions in the new code switches the assessment of a chairperson’s independence from the moment of appointment to being on an “ongoing basis”.

When it comes to improvements to the UK’s stewardship code, the association believes it should focus on stewardship activities. It requests that asset managers be required to report on how they carried out their stewardship activities.

The association also seeks ways to develop more “discerning” asset owners to push for better stewardship practice.

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Gen Z investors' focus on ethics and ESG poses a challenge for boards
    October 13, 2021
    Young Gen Z woman with coffee and phone in front of brightly painted wall

    EQ poll reveals 18% of all UK/US retail shareholders are Generation Z—and 80% of them factor ESG issues into their financial decision-making.

  • Women on boards 'are driving progress on ESG'
    November 1, 2021
    Woman holding leaf

    The Sustainability Board Report says boardrooms need more women if action on ESG issues is to improve further.

  • ESG reporting all-important in stakeholder engagement
    July 7, 2022
    stocks, asset management, shares, investor engagement

    Experts advise that by boosting their annual reporting, boards can build trust and form more meaningful relationships with investors.

  • UK green finance report puts focus on transition plans
    October 20, 2021
    Rishi Sunak, Chancellor of the Exchequer

    Chancellor Rishi Sunak says requiring firms to disclose transition plans would help the UK to “set new global standards for sustainability”.

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

FRC, Investment Association, stewardship codes, workforce engagement

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • ‘Fast-moving threats’ will soon challenge boards, warns CIIA
  • Meta faces US lawsuit over its corporate governance
  • News round-up: this week in governance
  • Don’t let reporting requirements lead to boilerplate disclosures
  • How to integrate sustainability into financial decision-making

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

Leadership ESG

Leadership in ESG Integration: a study into UK board oversight, implementation and disclosure

This research report is based on detailed response...
The Engagement Appeal: The Path to Inclusive Investor Engagement

The Engagement Appeal: The Path to Inclusive Investor Engagement

This is the inaugural white paper from The Engagem...
Mazars c-suite 2023

Mazars C-suite barometer 2023

The Mazars C-suite barometer is based on responses...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...
 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|