Governance Summit with Prof. Mervyn King, SC



There is a movement of corporate reform taking place globally recognising the increasing importance stakeholders, not just shareholders, in the business of the company. Many shareholders regard their investment purely as a tradable commodity and delegate full authority to the directors to operate the business. They do not hold directors to account for their actions and, beyond their own financial return, have little interest in the underlying business of the company or its impact on stakeholders including staff, suppliers, customers and the wider society.

This has led to a decline in corporate ethical standards, opaque reporting to conceal actual company performance, sudden collapse of corporate titans and financial crises. Where CSR projects are started out of broader concern they often fall short of fostering strong bonds with the many stakeholders who rely on the business for their jobs or livelihood.