Sir Win Bischoff, the FRC chair, has an article here today. Sad to see the same old platitudes trotted out with the same old phrases - "tone at the top", "constructive challenge". Time for a new language and a new conversation.
Here's the big question: can a legal and regulatory framework developed around 19th century corporate structures provide the corporate accountability needed for the 21st century? Shouldn't we stop tinkering at the margins with audit and with boards and have a constructive debate about the role of the corporation now that owners are so different and now that so many different groups are affected globally by corporate activities?
Why not encourage boards to get on with directing and controlling their companies as they see fit, developing strategies and structuring themselves in a way that best serves their objectives, using any consequent departures from the Code as the basis for a proper conversation with those who have an interest in what they are doing? Make the conversation open and ongoing.
And let's open up the investment intermediary chain, so that all the intermediary accountabilities are transparent and governance structures can be seen. Pensioners need to know a great deal more about how their investments are managed.
Waffling on about corporate culture isn't going to change anything!
