The UK has developed a world-leading reputation for the quality of its corporate governance regime. However, the IoD believes that for this to remain the case, and to restore public confidence in business, our standards require continual reform and future-proofing.
The IoD is proposing 10 policy initiatives which will reinforce the UK’s pre-eminent position in the global corporate governance space. These proposals offer lawmakers mechanisms through which business can regain the trust of wider society while at the same time avoiding an extreme lurch to heavy-handed regulation or outright nationalisation.
In its Corporate Governance manifesto, the IoD calls on the next Government to:
- Support the development of an industry-led Code of Conduct for Directors.
- Deliver proposed reforms to the regulation of auditors.
- Establish an independent Corporate Governance Commission.
- Transform the operation and functioning of Companies House.
- Mandate minimum requirements for director training.
- Encourage the adoption of a Code of Practice for board evaluation.
- Create a framework through which companies can project their Business Purpose.
- Encourage a consistent approach to Climate-Related Corporate Disclosures.
- Explore opportunities to establish an ESG-oriented Sovereign Wealth Fund.
- Establish a newly-defined corporate form – the Public Service Corporation.
These proposals taken together will encourage a longer-term, sustainable approach to business behaviour, create better directors and increase the accountability of our corporate governance system as a whole.
Read the IoD's Corporate Governance Manifesto