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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For further information, please contact Maria Brookes, Media Relations Manager:
mbrookes@icsa.org.uk
+44 (0)20 7612 7072
+44 (0)7890 649 143
Notes to Editors:
- The Chartered Governance Institute is the qualifying and membership body for governance with over 125 years’ experience of educating and supporting governance professionals. With a Royal Charter purpose of leading ‘effective and efficient governance and administration of commerce, industry and public affairs’, we provide professional development, guidance and thought leadership, and work with regulators and policy makers to champion high standards.
The Institute has divisions in Australia, Canada, Hong Kong/China, Malaysia, New Zealand, Singapore, Southern Africa, the United Kingdom and Zimbabwe. The division headquartered in London (known as ICSA: The Chartered Governance Institute) represents and supports members in the UK, Republic of Ireland, Crown Dependencies and associated territories, which include the Caribbean, sub-Saharan Africa, the Middle East, Mauritius and Sri Lanka. Website: www.icsa.org.uk