London, 26 November 2020 – ICSA: The Chartered Governance Institute today welcomed the Financial Reporting Council’s 2020 review of governance reporting.
Peter Swabey, Policy and Research Director at the Institute commented:
“This a hard-hitting, but very helpful analysis of governance reporting by a random sample of 100 companies drawn from across the market, including FTSE 100, FTSE 250 and Small Cap companies.
“Far too many companies see governance as a compliance issue, a question of ticking boxes. We see it as far more than that. Governance reporting is an opportunity for companies to communicate with investors and stakeholders about the way in which they operate. Unfortunately this an opportunity which is too often spurned, with the use of boilerplate wording which could apply to any company and too much focus on process rather than outcomes.
“The FRC has taken this opportunity to offer examples of both good and poor practice, showing clearly how companies can add value through open and transparent reporting. The Government is expected to give the FRC additional powers in the coming months to significantly increase its regulatory functions. After reading this powerful report, no company can argue that it has not been given not just fair warning, but also a clear indication of the regulatory expectations and guidance as to how these can be met.
“This is an important piece of work which the Institute looks forward to being able to support through our annual recognition of good practice in corporate reporting.”
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Notes to Editors: