City & Business: Hampel will help, not hamper the board
Sunday 10 August 1997
The original Cadbury committee was not actually set up to look at governance but to examine standards of accounting in the wake of some high profile corporate collapses. The Greenbury committee was forced upon us as an alternative to Government intervention in the wake of often hysterical media coverage of executive pay. The committee has its roots in a genuine belief that it is important to drive forward the principles of governance.
The selection of Sir Ronald Hampel as chairman guaranteed a sensible and thoughtful response to a difficult and much misunderstood subject. Last week's preliminary report therefore contained little of any surprise to seasoned corporate governance followers.
The tone is set at its very beginning, noting that the debate in the UK has been dominated by discussion of corporate governance in relationship to accountability to the detriment of its importance for business prosperity. The imbalance, the report argues, should be corrected.
That correction will come not from downgrading the importance of accountability to shareholders but by upgrading the broader responsibility that a board has to stakeholders at large. Indeed, the partnership approach to governance is one which runs through the report. Such an approach will steer companies away from simple box ticking of a set of rules and towards a more productive and co-operative response to the challenges a business faces. The report accepts that governance must be judged collectively on a case-by-case basis.
It was always the intention of the committee to avoid burdening business with yet more rules and regulations. That it has done, without undermining the basic principles which underpin a framework that is still developing.
The report should be welcomed and supported by directors, shareholders and stakeholders alike.
- 2 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 3 University student in court for allegedly covering housemates' food in window cleaner and spit
- 4 Ryan Gosling posts tribute to 'Ryan Gosling Won't Eat His Cereal' creator Ryan McHenry
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...