FRC: companies must prioritise workforce in governance policies

Author: Olly Jackson | Published: 21 Jan 2019

The UK’s Financial Reporting Council (FRC) told IFLR that stakeholder engagement is at the centre of its updated Corporate Governance Code, and large companies need to think more broadly about how they engage and consult with their workers.

The updated Corporate Governance Code for premium listed companies only came into force at the turn of this year, following concerns about the behaviour of big business after high-profile cases such as BHS and Sports Direct. Prime Minister Theresa May made a big public push at the very start of her premiership for greater board-level responsibility – but did not change the law as first promised.

"There is not a one-size-fits-all solution"

During the Conservative leadership election and in the first month of her term as prime minister, May pledged a law change that would force companies to put consumers and workers on their boards. Since then she has stepped back from such promises, but Maureen...