Big companies fail to clarify governance
Many of the country's largest companies are ignoring calls from shareholders to identify corporate governance policies in their annual reports, according to research published today.
Link: Higgs’ special report
One in six annual reports of the FTSE 100 do not make a single reference to corporate governance, a study by Insight Investment Management found.
These findings were mirrored in a debate chaired the London Society of Chartered Accountants Business Ethics Panel last week. A panel, which included ICAEW vice-president Paul Druckman, concluded that ‘years of well meaning intention have not solved governance problems’.
The Insight study also revealed that one in eight reports refrained from saying which directors are responsible for dealing with ethical, environmental and human rights issues.
The DTI last week published a consultation paper on the Operating and Financial Review, aimed at making it mandatory for certain companies to provide non-financial data on local community and environmental issues.