The Financial Reporting Council published Proposed Revisions to the UK Corporate Governance Code in December 2017. The document you can download below sets out the comments of Relational Research.
In summary, we welcome the recognition of the value of the contribution of stakeholders to the success of companies and of engagement with them and their interests, as well as the wide-ranging impact of companies’ activities on stakeholders and the importance for boards to consider how their companies interact with the workforce, customers, suppliers and wider stakeholders.
We are also pleased to note the acceptance that companies can do more to recognise that the workforce and other stakeholders play a significant part in the long-term success of the company and that this is reflected in the revised Code by a requirement that boards should ensure effective engagement with, and encourage participation from, shareholders and other stakeholders.
However, as explained in the download, we suggest that the revised Code and Guidance should be clarified and expanded in a number of ways to help to understand and emphasise the value of an inclusive approach to stakeholder interests. We would ask that it be noted that we submitted comments on the Green Paper on corporate governance reform published by the Department for Business, Energy and Industrial Strategy in November 2016.