London, 29 August 2017 – ICSA: The Governance Institute is to issue guidance to companies on making the stakeholder voice heard in the boardroom.
This follows the Government's response to its Green Paper on corporate governance reform which was published today.
The guidance, developed jointly with the Investment Association, will be published in late September.
Welcoming the Government's proposals, ICSA Chief Executive Simon Osborne said:
"The Government has set out some important principles and mechanisms that should encourage companies to take them seriously, while avoiding excessive prescription.
"We share the Government’s view that many companies are already taking account of stakeholders in their decision-making, but we also share their desire to see good practice adopted more widely. We hope that the guidance we are producing with the Investment Association will help to do so.
"We also agree with the Government that it should be for individual companies to determine precisely how to go about engaging with their key stakeholders.
"The three specific approaches identified by the Government all have their merits, but should not be thought about in isolation.
"Designating responsibility to a non-executive director, for example, may have only a limited effect unless the company also considers what support and training they will need, how they engage with stakeholders to ensure they understand their views and concerns, and how the board then provides feedback to those stakeholders."
Commenting on the Government’s other proposals Peter Swabey, ICSA’s Policy and Research Director, said:
"ICSA members have extensive experience of working with the boards of listed and non-listed companies, and we look forward to contributing to the review of the UK Corporate Governance Code and the development of a new code for private companies".
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For further information, please contact Philip Dewhurst:
+44 (0)7909 537 642
1 ICSA: The Governance Institute is the professional body for governance. We have members in all sectors and are required by our Royal Charter to lead ‘effective governance and efficient administration of commerce, industry and public affairs’. With over 125 years’ experience, we work with regulators and policy makers to champion high standards of governance and provide qualifications, training and guidance.