BusinessCompany NewsCorporate governance still not top of the agenda

Corporate governance still not top of the agenda

As the new combined code is launched, more than two-thirds of IT directors claim there has been little or no increased focus on corporate governance in their companies.

Link: New corporate code launched

Twenty-one percent of IT directors said they had seen no evidence of an increase, with 46% reporting only a moderate increase.

The study was conducted on behalf of Accountancy Age’s sister publications IT Week and Financial Director, with supplier Unisys.

Some 70% of the 200 IT directors surveyed said a lack of time and resources was a major obstacle to increased corporate governance in IT management.

Nearly half of respondents also said additional administrative strain is a deterrent, and 47% blamed cultural resistance.

‘It’s possibly unrealistic, particularly in IT,’ said one respondent.

‘If there is too much control over IT, then people may be reluctant to attempt new ideas and new strategies.’

But 45% of IT managers have a ‘very good understanding’ of the impact of corporate governance, and 47% said they had a ‘good understanding’.

Some 19% of IT managers said that the board would definitely consult them about corporate governance, while 22 per cent said it was very likely.

But managers supporting corporate governance believe it could be a boost for the IT department.

‘There would be a greater understanding from the highest level,’ said one respondent. ‘For example, an understanding of something more than the bottom line. People are motivated by interest shown in their function, which is particularly true for IT.’

Ovum principal analyst David Bradshaw said: ‘This is not just about financial systems.

‘It means your ERP system needs to work properly and has to integrate properly. It’s not just financial data in your ERP system, we’re talking personnel and so on.’

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