Corporate Governance
On 20 July 2016, The Financial Reporting Council ("FRC") published a report on the relationship between corporate culture and sustainable growth. This forms part of the FRC's Culture Project. The report recognised the importance and value of a strong, healthy corporate culture. It noted that the board of directors and particularly the chief executive of a company must demonstrate leadership in instilling that culture into all levels of the company. The report also noted the importance of openness and accountability in companies, and how values and incentives must be aligned.
Aiming to improve the perception of corporates amongst the general population, the report also notes how the duty owed by directors to act in the best interests of the company must not be viewed in isolation. The report offers practical methods for corporates to monitor corporate culture, highlight issues with corporate culture and improve accordingly.
The report can be accessed here:
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