Governance exists to ensure organisations can fulfil their purpose. Good governance builds a framework that enables you to run your organisation in a way which is efficient and effective to sustain long term success. But what does good governance actually look like? Good governance is both hard to define and hard to recognize. This poses a fundamental problem for stakeholders - investors, employees, pension fund beneficiaries or members of the general public - because they have a vested interest in good governance but lack the tools and insights to measure and influence it.
Since 2014, Z/Yen have been working with the Institute of Directors (IoD) and Cass Business School to launch a new Corporate Governance initiative in order to develop and test different ways of measuring and reporting on corporate governance in UK listed companies and to stimulate a public debate on the importance of corporate governance in rebuilding the reputation of the UK business community. The research sought to explore two questions:
This free-to-download report was prepared by Z/Yen and published by IoD, Cass Business School and Z/Yen:
The resulting report sets out the initial findings of six months of research into the measurement of corporate governance in UK-listed companies. In particular, it includes, for the first time, the results of a survey of how the governance of major UK companies is perceived by business practitioners. The report also identifies about 50 factors which, on the basis of publicly available information, provide an indication of the magnitude of governance risk at individual companies.
Please contribute to the next edition by rating a selection of companies that you are familiar with. The questionnaire should take no more than five minutes. It runs continuously, so you can rate more companies at any time.