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Daily CSR

Daily CSR
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‘2017 Good Governance Report’ Includes ‘Reputational Risk’ As The Key Board Metric


Corporate leaders in the U.K. can expect some favourable guidance from the flagship report of Institute of Directors.

Dailycsr.com – 31 October 2017 – Two “ethical guidance bodies” will give advice which will prove to be beneficial to the corporate “bosses” of the United Kingdom, reports Brian Collett.
The Institute of Directors”, dating back to a hundred and fourteen year, is a group of professionals who support “entrepreneurship and responsible business practice”, while the above mentioned recommendations will be incorporated in Institute of Directors’ “Good Governance Report”. While Collett added:
“Environmental, social and governance data and information on business conduct risks will be contributed by RepRisk, the Zurich-based global provider of research and commercial intelligence, and the Chartered Quality Institute, the international management specialist organisation headquartered in London, which have formed a partnership with the Institute of Directors for the purpose”.
The said report is a flagship that comes from the institute on “corporate governance”, whereby it rates the “FTSE 100 companies” on the basis of their “corporate governance performance” and assess them on their “reputational exposure and business conduct risks”. Alexandra Mihailescu Cichon, the Head of RepRisk’s Sales and Marketing, describes the report as “trailblazing publication”. And she says:
“The integration of ESG information reflects the increasing expectations of shareholders that the topic of sustainability is an integral part of business strategy and decision-making at the board level.”
While, the Policy Director of Chartered Quality Institute, Estelle Clark, stated:
“The issue of reputational risk needs to be significantly elevated on the boardroom agenda of organisations of all sizes, both public and private.
“Recent high-profile governance failings at Uber, Bell Pottinger and Volkswagen, to name only a few examples, highlight the fact that when governance fails, the commercial viability of an entire enterprise can very quickly be called into question.
“The 2017 Good Governance Report has, for the first time, included reputational risk as a key metric for the board, shareholders and wider stakeholders, enabling them to gauge whether an organisation’s actions mirror the brand image and the rhetoric.”