Our Corporate Governance Expert Group contributed to our response to Tomorrow's Company's consultation draft – Governing Culture: Risk or Opportunity?
We welcomed Tomorrow's Company's and the City Values Forum's initiative in offering an agenda and roadmap that helps boards assess their approach to governing their organisation's purpose, values and culture.
We also welcomed the fact that their approach to culture was moving down the path we had envisaged in our Quoted Companies Alliance Corporate Governance Code for Small and Mid-Size Quoted Companies (the QCA Code) in 2013. We noted that the QCA Code serves as a practical, outcome-oriented approach to corporate governance for UK quoted companies that helps them to create a desired and consistent culture.
We highlighted that we shared the view that an organisation's culture plays an important role in creating and preserving value for shareholders and ensuring growth in long-term shareholder value. We also noted that culture is most effectively developed from within an organisation.
We noted that the QCA Code emphasises that companies should focus on having clear strategic objectives and the people in place with the right skills and experience to deliver those objectives, which is essential in setting the appropriate tone and culture for the organisation.