The UK’s Financial Reporting Council, which sets the country’s corporate governance code, has criticized UK listed companies for merely “paying lip service” to changes in Britain’s corporate governance guidelines that recently came into effect. The UK boardroom regulator said that a review found that many companies prioritize “strict compliance” but give “insufficient consideration” to the importance of culture and strategy in the context of ensuring good corporate governance.”
The FRC revamped the UK’s 25-year-old corporate governance code in 2018, introducing guidelines for boards to scrutinize corporate culture, among other duties. The FRC also urged boards to pressure management to take action — to be detailed in annual reports — when it finds culture to be in tension with the company’s stated strategy.
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