British business must act on corporate governance – News from Parliament – UK Parliament

Read first-hand the report of the UK parliamentary Business, Energy and Industrial Strategy Committee report which says business must act to address lack of trust.

Source: British business must act on corporate governance – News from Parliament – UK Parliament

I remember from my sabbatical when I completed an applied doctorate in business administration that there was a rich research literature on corporate governance, both in terms of theory and empirical analysis.

For a parliamentary select committee to say that business must act is a cop out.

Corporate governance does not improve in the UK because there are powerful vested interested in play protecting the status-quo.

Part of the problem is that the UK does not have a written constitution, unlikes the US and Germany. In both the US and Germany, corporate governance has some serious teeth and executives live in real fear of intervention.

Despite the drum-beating of Brexiteers, the UK is strategically weak and corporate governance is one of the cornerstones of weakness. The City is still a closed shop with interlocking directorships.

But nothing will change with a Conservative Government in power who pander to their chums.

Perhaps, it will take a new centrist party inspired by the UK’s Macron?

 

 

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