Introduction (150)

Over the past two decades, the scope of corporate governance has
widened to take in bank bailouts, executive remuneration and lack of
boardroom diversity. With this in mind, ICAEW argues that only those
companies that are sensitive to the full range of their responsibilities
including achieving a business purpose, behaving in a socially acceptable
way, complying with law and regulations and acknowledging and
answering for their actions can truly obtain their licence to operate.
The ICAEW considers that there are four responsibilities that are
fundamental to companies today: achieving a business purpose that
stakeholders can understand; behaving in a socially acceptable way;
meeting legal and regulatory responsibilities; and (iv) stating how
responsibilities are met. The ICAEW believes that if companies
acknowledge a broad range of responsibilities then challenges in areas
such as executive remuneration, bank bailouts, short termism, distrust of
the listed company model, aggressive tax avoidance, lack of diversity and
legislative delays could be better addressed.
http://www.nortonrosefulbright.com/knowledge/publications/101799/essential-corporatenews-week-ending-26-july-2013#section7
One would be examining whether different models of Corporate
Governance would have made a difference. However, there are enough
differences between the US and Europe to demonstrate that simple
organisational issues would have made little difference. Under the second
description, we would be examining whether there are improvements that
can be made to Corporate Governance arrangements, which would help to
prevent or at least alleviate the worst impacts of the Financial Crisis. If you
adopt the first description of Corporate Governance, then the questions
are purely about the board, its composition and its committees. If you
adopt the second description, then the debate enlarges and becomes
about how the tone and approach adopted at the board level are
translated into the day to day activities of the organisation.