IoD Chairman, Lady Barbara Judge travelled to Salzburg, Austria late last year to participate in the Salzburg Global Forum on Corporate Governance. Launched in 2015, the forum brings thought leaders together to facilitate a discussion about changing regulatory and economic environments, comparative practises, and the changing role and duties of directors.
The 2016 session looked at the changing nature of the requirements placed on directors and the balance they have to strike between stakeholders, societal expectations and legal requirements. Lady Judge’s presence was timely as it falls at a time where the Government is examining the corporate governance framework in the UK. The IoD is committed to engaging with the Government and wider stakeholders on the topic and our response to the recent Government green paper on corporate governance reform can be found here.
While the discussions at Salzburg are held under Chatham house rule, so as to foster open and frank conversation, they do publish a report following the forum and this can be found here. Topics covered included; how should boards be composed and organised and how can directors withstand market pressures for short-term performance in order to achieve long-term goals.
2017 is shaping up to be a formative year for UK corporate governance as the Government responds to submissions to their green paper on the subject, the BEIS Select Committee reports on their request for evidence and the FRC reviews their code for listed companies. The IoD is uniquely placed, tied to “promote the study, research and development of the law and practice of corporate governance” by our Royal Charter and tasked to represent 34,000 business leaders. We will be using this position to campaign for a balanced corporate governance framework that works for our members, UK businesses and our society as a whole.