ICSA and the Investment Association launch joint project on board engagement

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17 Jan, 2017

ICSA: The Governance Institute (ICSA) and the Investment Association (IA) have jointly launched a project to provide guidance on how the boards of the UK’s largest companies can improve their engagement with and understanding of the views of their stakeholders and thus better reflect such views in their decision making.

The project “aims to tackle concerns that the voices of key groups such as employees, customers and suppliers are not being heard at the highest levels of British business”.  

The ICSA and IA will produce practical guidance as to how Boards can enhance their understanding of the interests of employees and other stakeholders in accordance with their duties under Section 172 of the Companies Act 2006.  The guidance will cover: 

  • the ways in which companies can identify non-executive directors with relevant stakeholder experience
  • the processes by which boards can receive the views of their key stakeholders; and
  • how training and induction can be used to enhance directors’ understanding of their duties and the interests of, and impact on, different stakeholders. 

The voluntary guidance, which will be published in the second quarter of 2017, will also offer options as to how companies might demonstrate how they have fulfilled their duties in this area. 

The press release is available on the ICSA website.

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