Chairman of the FRC highlights the importance of corporate governance to the success of business
19 Sep, 2017
The Chairman of the Financial Reporting Council (FRC), Sir Win Bischoff has highlighted, at a recent conference, the importance of corporate governance indicating that “it is the keystone of successful business and, coupled with a healthy corporate culture (which encompass purpose and values), creates a framework that supports the values that drive long-term investment”.
Throughout the speech, Sir Win Bischoff emphasised how purpose and values drives governance.
He referred to the importance of establishing a healthy corporate culture calling it a “key ingredient in delivering long-term sustainable performance”. Explaining further, Sir Win Bischoff put forward the view that “a poor culture is [in my view] a significant business risk in itself” and cited the FRC's report 'Corporate culture and the role of boards', published in July 2016 which highlighted the vital role of the Board in establishing and delivering good culture and behaviours within an organisation.
Alongside culture, Sir Win Bischoff indicated that a successful company also requires a diverse workforce and succession planning highlighting that “boards as a whole need thoughtfully to consider also the links between diversity, strategy and business values”.
Concluding regarding the role of corporate governance and the public, Sir Win Bischoff highlighted:
The UK remains in a good position globally, with high levels of trust and confidence in companies among investors but worryingly lower levels among the public. Corporate governance must be such as to establish and maintain that respect and trust also with the public”.
The full text of the speech can be obtained from the FRC website.
