The Companies (Audit, Investigations and Community Enterprise) Bill was published. The Bill was designed to tighten regulation of company boards and to create a new form of company for social enterprise ('community interest companies').
Source: Companies (Audit, Investigations and Community Enterprise) Bill [HL], Department of Trade and Industry, TSO (0870 600 5522)
Links: Text of Bill | Explanatory note
Date: 2003-Dec
A report said that, while compliance with the code on corporate governance had improved, only around 1 in 3 listed companies (34 per cent) fully complied with it.
Source: PIRC Corporate Governance Annual Review 2003, Pensions and Investment Research Consultants Limited (020 7247 2323)
Links: PIRC press release (pdf)
Date: 2003-Dec
An official taskforce report said that greater transparency on how value was created through effective 'people policies' and practices would benefit organisations and their stakeholders.
Source: Task Force on Human Capital Management, Accounting for People, Department of Trade and Industry (0870 150 2500)
Links: Report (pdf) | Links to background papers | EOC press release
Date: 2003-Nov
A report said that social responsibility policies could improve companies' competitiveness and value added.
Source: Sustainability and Business Competitiveness, Department of Trade and Industry (0870 150 2500)
Links: Summary (pdf) | Forum for Future press release
Date: 2003-Nov
A think-tank report said that major companies should have to report on their social and environmental policy performance - on issues such as workforce diversity and greenhouse gas emissions. It argued that this would boost stakeholder activism and improve business practice.
Source: Ella Joseph, A New Business Agenda for Government, Institute for Public Policy Research, available from Central Books (0845 458 9911)
Links: Summary | IPPR press release
Date: 2003-Nov
A report argued that business could and would innovate towards a cleaner, greener economy - but only if the market rewarded it for doing so. It said the problem was that governments were 'cowed into taking the teeth out of social and environmental policies' by the negative lobbying of corporate public affairs teams and trade associations.
Source: Simon Caulkin and Joanna Collins, The Private Life of Public Affairs, Green Alliance (020 7233 7433)
Links: Summary (pdf)
Date: 2003-Sep
Directors of stock exchange companies earning over 500,000 a year received average pay rises in 2002 of 12.4 per cent - about three times that of private sector workers generally.
Source: Press release 4.8.03, Labour Research Department (020 7928 3649)
Links: Survey results (Word file) | LRD press release
Date: 2003-Aug
A survey found that only 15 of the 597 full-time directors of the top FTSE 100 companies were women.
Source: Annual executive pay survey by The Guardian, 1.8.03
Links: Guardian report (1) | Guardian report (2)
Date: 2003-Aug
A collection of essays said that there was a cross-party consensus on promoting responsible corporate activity on a voluntary basis, rather than by compelling business to be good via new legislation. However, it said that a voluntary approach would only work if the public had enough information to make choices between good and bad companies.
Source: Beth Breeze (ed.), Race to the Top: How government, business and consumers can drive corporate social responsibility, Social Market Foundation (020 7222 7060)
Links: Summary
Date: 2003-Aug
A new code was published on standards of corporate governance (applicable to reporting years beginning on or after 1 November 2003). It was based on the draft revision of the existing code suggested in the Higgs report on non-executive directors, published in January 2003. The code s overall aim was to enhance board effectiveness and to improve investor confidence by raising standards of corporate governance. It included new definitions of the role of the board, the chairman and the non-executive directors; and more open and rigorous procedures for the appointment of directors, from a wider pool of candidates.
Source: The Combined Code on Corporate Governance, July 2003, Financial Reporting Council, available from CCH Information (0870 777 2906)
Links: Code (pdf) | FRC press release | DTI press release | CBI press release | TUC press release | Higgs report (pdf)
Date: 2003-Jul
The government said that it agreed with the main points in a report by MPs, commenting on a White Paper on company law reform.
Source: Government Reply to the Committee's Sixth Report of Session 2002-03, on White Paper on Modernising Company Law, Thirteenth Report (Session 2002-03), HC 1022, House of Commons Trade and Industry Select Committee, TSO (0870 600 5522)
Links: Response | Report | White Paper (pdf)
Date: 2003-Jul
Research found that employees saw a clear connection between responsible business practice and corporate performance. It found that responsible practice could help to attract, motivate and retain a talented and diverse workforce, that employees thought such a workforce would be more creative and innovative, and that this would in turn improve competitiveness and profitability. However, only 45 per cent of employees found the recruitment rhetoric about corporate values that helped attract them to their employer was actually implemented.
Source: Responsibility: Driving Innovation, Inspiring Employees - FastForward Research 2003, Business in the Community (0870 600 2482)
Links: Report (pdf) | BITC press release | CIPD press release
Date: 2003-Jul
A think-tank report on corporate social responsibility said that a plethora of reporting frameworks, the need to mitigate the demands of corporate critics, and the threat of legislation, together risked creating a passive 'box-ticking' approach to the issue.
Source: Redefining CSR, Tomorrow s Company (020 7930 5150)
Links: Summary (pdf)
Date: 2003-Jul
A report highlighted how a range of different backgrounds and experiences among company board members could enhance board effectiveness, and explored how a broader range of non-executive directors could be identified and recruited.
Source: The Tyson Report on the Recruitment and Development of Non-Executive Directors, London Business School (020 7262 5050)
Links: Report (pdf) | Press release (pdf) | TUC press release | Guardian report
Date: 2003-Jun
A private member's Bill was introduced which would require companies to improve their reporting on social and environmental issues, and their accountability to stakeholders.
Source: Linda Perham MP, Corporate Responsibility Bill, TSO (0870 600 5522)
Links: Bill (pdf)
Date: 2003-Jun
The government began a consultation exercise on directors' contracts, performance, severance payments and the linkage between them. It sought views on whether - and if so what - further measures were needed to ensure that compensation reflected performance when directors' contracts were terminated.
Source: 'Rewards for Failure': Directors remuneration Contracts, performance and severance, Department of Trade and Industry (0870 150 2500)
Links: Consultation document (pdf) | DTI press release | NAPF press release | PIRC press release (pdf)
Date: 2003-Jun
The water industry published its first overview of how it was responding to the 'corporate social responsibility agenda'.
Source: What CSR means for the Water Industry, Water UK (020 7344 1804)
Links: Report (pdf) | Water UK press release
Date: 2003-Jun
A think-tank paper argued that empowering shareholders, and letting them run companies how they wanted, was the best way to tackle boardroom abuses. It said that competition would soon weed out sub-standard governance structures, and that state regulation might make things worse by giving shareholders a false sense of security.
Source: Elaine Sternberg, Competition in Corporate Control, Adam Smith Institute (020 7222 4995)
Links: Paper (pdf) | Summary
Date: 2003-Jun
Research found that nearly two-thirds of the largest charities had no written ethical or socially responsible investment policy.
Source: Duncan Green, Do UK Charities Invest Responsibly?, Just Pensions (020 7440 9712)
Links: Report (pdf) | Summary | Just Pensions press release
Date: 2003-May
A think-tank pamphlet argued that shareholder empowerment and competition, not regulation, were the key to responsible corporate management.
Source: Elaine Sternberg, Competition in Company Control, Adam Smith Institute (020 7222 4995)
Links: Pamphlet (pdf)
Date: 2003-May
A 'corporate responsibility index' was published. It was said to be the first business-led, voluntary index, publicly benchmarking the responsible business practice of companies in a range of different industry sectors. 122 companies participated, including 53 of the FTSE 100 (largest quoted public companies).
Source: Press release 12.3.03, Business in the Community (0870 600 2482)
Links: Press release
Date: 2003-Mar
The 'world s first' assurance standard was published - developed to ensure the credibility and quality of corporate social, economic and environmental reporting.
Source: AA1000 Assurance Standard, Institute of Social and Ethical AccountAbility (020 7549 0400)
Links: Standard (pdf)
Date: 2003-Mar
A committee of MPs welcomed a proposed statement of directors' duties (contained in a White Paper) as a step forward, explicitly recognising that good managers should have regard to a broader range of considerations than value to shareholders.
Source: The White Paper on Modernising Company Law, Sixth Report (Session 2002-03), HC 439, House of Commons Trade and Industry Select Committee, TSO (0870 600 5522)
Links: Report | White Paper (pdf)
Date: 2003-Feb
A survey of member-nominated trustees of pension funds found that fewer than 1 in 10 believed that companies were providing enough social and environmental information for investment decisions to be analysed: but they believed that social and environmental issues would have a substantial impact on the financial performance of companies over the following five to ten years.
Source: Chris Gribben and Leon Olsen, Will UK Pension Funds become more Responsible?: Survey of member nominated trustees, Just Pensions/UK Social Investment Forum (020 7405 0040)
Links: Report (pdf) | Report | Press release
Date: 2003-Feb
A coalition of leading charities and non-government organisations launched a campaign for the reform of English charity law, and for the introduction of a public benefit test for all charities.
Source: Press release 12.2.03, National Council for Voluntary Organisations (0800 279 8798)
Links: Press release | Guardian report
Date: 2003-Feb
A report argued that trade unionists should use their power as shareholders to stop excessive executive pay and to act against other failings in corporate governance.
Source: Working Capital: Institutional investment strategy, Trades Union Congress (020 7467 1294)
Links: Report (pdf) | Press release
Date: 2003-Feb
A survey of employers found that 87 per cent are involved in some way with education institutions. Of those who have a link with a school, college or higher education establishment, 55 per cent offer work experience, while 49 per cent provide financial assistance through sponsorship for school activities and events or through other donations.
Source: Education-Business Links, Institute of Directors (020 7766 8866)
Links: Report (pdf) | Press release
Date: 2003-Feb
The Home Office announced the establishment of a new research initiative, called the 'State of the Sector Panel'. The panel will be made up of several thousand voluntary and community organisations (reflecting the range of such organisations in England, but in particular those which provide key public services). Over a period of three years the Home Office will survey the panel on a regular basis in order to monitor progress in increasing voluntary and community sector activity.
Source: The State of the Sector Panel: Invitation to voluntary and community organisations to register, Home Office (0870 000 1585)
Links: Invitation
Date: 2003-Feb
A national survey of small and medium-sized enterprises, conducted across a range of business sectors, revealed a widespread lack of environmental awareness.
Source: How Green are Small Businesses? A snapshot of environmental awareness and practice in small and medium sized enterprises (SMEs), Environment Agency (08459 333111), Scottish Environment Protection Agency, Environment and Heritage Service Northern Ireland, and Small Business Service
Links: Report (pdf)
Date: 2003-Jan
An independent report, commissioned by the government, envisaged a more important role for non-executive directors. It made proposals to promote meritocracy in the boardroom through an open, fair and rigorous appointments process and to widen the pool of candidates; a new, clear description of the role of the non-executive director; and a new definition of 'independence' that addresses both relationships that would affect a director s objectivity and also those that could appear to do so.
Source: Derek Higgs, Review of the Role and Effectiveness of Non-Executive Directors, Department of Trade and Industry (020 7215 0409)
Links: Report (pdf) | Press release | DTI press release | Link to research papers | PIRC press release (pdf) | CBI press release
Date: 2003-Jan