Ethics

Governance Watch - Issue 69

Governance Watch - Issue 69

Culture

The issue of toxic culture haunts UK corporate governance. When coping with a pandemic requiring an agile corporate response it can become dangerously hard to budge. As a country we may have elevated an interest in matters of corporate governance from the pursuit of ‘anoraks’ to that of ‘experts’ and ‘business strategists’ over the last decade, but mind-sets still shudder at change. This is apparent in news this week from two long-standing names in British business: Marks & Spencer (M&S) founded in 1884 and the Institute of Directors, the business lobby group formed in 1903.

Governance Watch - Issue 68

Governance Watch - Issue 68

Business, Ethics and Trust

The scale of the UK government's economic response to the coronavirus pandemic was termed "unprecedented" by the National Audit Office several months ago, in May. It is one of the highest economic support responses in the world in terms of percentage of GDP, with much of the spending going towards supporting businesses.

Governance Watch - Issue 67

Governance Watch - Issue 67

Pay and Accountability

We might have “turned the tide” in the fight against coronavirus, as UK Prime Minster Boris Johnson said at Tuesday’s media briefing, but the prevailing sentiment in the country from boardrooms to active working living rooms remains one of uncertainty. We do not know how long the pandemic will rule our lives or how extensive the economic damage left in its wake will be. But we can reaffirm what we deem acceptable standards of corporate behaviour, and a sharp critical focus of corporate governance must inevitably remain on pay.

Governance Watch - Issue 66

Governance Watch - Issue 66

Investors and Stewardship

Investor stewardship has become the guardian of good corporate governance in this pandemic. Will it remain that way as we find a way to live and work beyond Covid-19? Only time – and the behaviour of business - will tell. However, it is clear, as lockdown starts to ease with caution in part of the United Kingdom, that ESG – the acronym taking in the environmental, societal and governance considerations for any business – has been thrust to the forefront. We will have to wait and see how high it features in the consideration of corporate governance by businesses aiming to serve society better by their actions.

Governance Watch - Issue 65

Governance Watch - Issue 65

On Governance, Ethics, Data – And Collaboration

We think of corporate governance as the essence of a business, good for building better companies which inspire public trust and that is why we spend so much time focusing on getting the thinking on the principles of governance right.

Every business faces daily challenges today the likes of which we have not seen before, due to technological advances, global supply chains, rising concern on environmental and climate risk, changing consumer attitudes and more. But the coronavirus pandemic must be the biggest challenge faced by corporate governance in a very long time. It is also one that should bring minds back to focus on fundamental issues of ethics and what we value.

The rise and rise of Amazon as a near instant delivery business that has continued to operate with remarkable efficiency has been apparent in recent weeks. It said recently it was looking to hire another 100,000 workers in the US and announced a raise in pay in the US, UK and Europe as it tries to meet the surge in demand for online shopping.

Governance Watch - Issue 59

Governance Watch - Issue 59

Diversity Is Difference

“Ideas are not real estate” said Robert Rauschenberg, the American artist. I wish it held true in the business world. Because ideas are bought, sold and poached all the time, but they are still not shared enough together with experience and two-way learning and mentoring opportunities in collaboration towards a common goal. It might be a useful way of thinking about our approach in the UK in the drive for gender diversity and progression.

Governance Watch - Issue 58

Governance Watch - Issue 58

Diversity and Power

This week everyone in the United Kingdom was given an important lesson on the value of diversity in sorting out difficult issues.

As the Supreme Court, the highest court in the land, with its first-ever female President Brenda (Lady) Hale, delivered a unanimous verdict around the unlawful prorogation of Parliament, history was made. The motto on Baroness Hale's coat of arms is ‘Omnia Feminae Aequissimae’: Women are equal to everything. She has been outspoken on the need for diversity in the judiciary.

 The ruling was on two legal challenges – one was brought by the businesswoman and Brexit legal campaigner Gina Miller, born to parents of Indian descent in what is now Guyana. In 2017, she was named the UK’s most influential black person and was also number 26 on the Asian power list of most influential British Asians.  

Governance Watch - Issue 56

Governance Watch - Issue 56

GDPR Bites

Investors might consider this to be a good time to invest in cyber security and cyber insurance, as it is clear that data breaches are about to become real and painful for business under the punitive powers of the EU’s General Data Protection Regulation. (GDPR). The Information Commissioner’s Office (ICO) has signalled its intent to use the new law in force from May 25, 2018 which takes the previous maximum fine of £500,000 under the Data Protection Act 1998 into a new realm altogether – a maximum of 4% of a company’s annual global revenue.  

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