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Can you regulate culture?

Paul Hodgson | January 23, 2018

At the same time as tightening rules for independence for both non-executive directors and chairmen, and asking for a little more give in the area of “explain” when companies don’t comply, the Financial Reporting Council’s recently proposed revisions to the Corporate Governance Code seeks to regulate company culture.

More specifically, the proposed code—which is much streamlined compared to the current version—is broken down into Principles and Provisions, with associated Guidance. Culture is part of the very first Principle, but it is in the second Provision that its purpose is isolated:

Directors should embody and promote the desired culture of the company. The board should monitor and assess the culture to satisfy itself that behaviour throughout the business is aligned with the company’s values. Where it... To get the full story, subscribe now.