Companies need to improve their governance practices and reporting in order to demonstrate their positive impact on the economy and wider society, according to a report from the UK’s Financial Reporting Council (FRC).
Despite changes made to the 2018 UK Corporate Governance Code which has led to some improvement in reporting, the report found greater focus is needed on longer term sustainability, including stakeholder engagement, diversity and the importance of corporate culture.
The UK Corporate Governance Code was updated with the aim of building trust in business by developing stronger relationships with key stakeholders. The updated code called for companies to focus on long-term sustainability by aligning purpose, strategy and culture, promoting integrity and valuing diversity.
Read the full article in the International Accounting Bulletin here