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Good Governance Index 2015

20 Jul 2015
Cartoonised good governance index word tree

The Institute of Directors calls on businesses and regulators to take a fresh approach to corporate governance

In a new report published today, the leading business organisation hopes its report will kickstart the debate about how to define good governance – and recognize those companies that do it best.

Launching the report, Ken Olisa, chairman of the advisory panel for the report, warned that the current system doesn’t fully address what corporate governance is truly about.

“No one factor dictates whether a company is well run,” Olisa said. “It is simply not correct for a company to say that because they have ticked certain boxes, they show good governance.

“Now is the time for some bold thinking on how we define and measure governance, including the recognition that it is essentially an organic process involving the interaction of groups of people.”

The new report is the first stage in a move towards creating a comprehensive Good Governance Index which ranks individual companies on their corporate governance, taking into account factors beyond just compliance and looking at a company’s wider corporate behaviour and culture.

Simon Walker, director general of the IoD, said that the new framework “challenges previous ways of measuring the governance of big companies, and kicks off a new debate on how firms can improve their transparency, accountability and performance.”

Read full report

Good Governance Report hub

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