What is the latest revised UK Corporate Governance Code?
A new revised ‘UK Corporate Governance Code’ has recently been released by the FRC – so what exactly is the new code about?
The Financial Reporting Council (FRC) has recently published a new Corporate Governance Code for 2018, based upon the necessary emphasis regarding the building of trust within the business sector. For instance, the FRC states that trust can be built through the strengthening of relationships with stakeholders and therefore the new code will play a key element in this.
The code comes as an initiative of the FRC to continue its promotion of transparency and integrity within the UK’s business sector, specifically regarding the promotion of corporate reporting by ensuring its quality.
The first version of the UK Corporate Governance Code (The Code) was released in 1992, in which was predominately focused upon what exactly ‘corporate governance’ is and why codes are required for the regulation of companies, as no company ‘exists in isolation’.
As the demands upon the UK’s corporate governance framework expanded, so did the requirement for revised versions of the code since its inception in 1992 arise.
However, despite its revisions, the core of the code remains intact, in which is predominately centered upon a set of ‘principles’ in which reiterate to companies the importance of corporate governance, so to ensure ‘long-term sustainable success’.
Furthermore, FRC also urges companies to implement a “corporate culture”, which in ensures the following:
- Company purpose
- Business strategy
- Promotion of integrity
- Valuing of diversity
- Application of principles.
To find out more about the recently revised UK Corporate Governance Code, please click here
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