Consultation adds new obligations on human rights and stakeholder interests to a raft of measures encouraging long-term value creation.
Efforts by the European Commission to introduce new corporate governance laws have stepped up a gear, with a fresh consultation proposing mandatory human rights due diligence and new obligations on company directors to balance the “interests of all stakeholders”.
The consultation follows stiff criticism from academics of the initial research undertaken for the Commission by EY on short-termism in corporate thinking.
The Commission says the aim of new corporate governance rules are to “enable companies to focus on the long-term sustainable value creation rather than short-term benefits”.
Critics say the assumption that most co
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