In September 2017, ICSA: The Governance Institute ("ICSA") and The Investment Association published new guidance to help company boards ensure that they consider and understand the interests of their key stakeholders when taking strategic decisions. In the guidance, it is acknowledged that while there are certain core principles that should guide the way boards approach the issue of stakeholder engagement, each company's approach will also need to be informed by its purpose, culture and values.
The guidance is divided into seven sections dealing with: directors' duties; stakeholder identification; the composition of the board; induction and training of directors; how the board can ensure it takes account of the impact on stakeholders in its discussions; the mechanics of engagement; and reporting and feedback.
ICSA and the Investment Association have stated that, if necessary, the guidance will be updated to reflect any new reporting requirements or changes to the UK Corporate Governance Code following the UK government's corporate governance reforms (which are expected to come into effect by June 2018).
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