UK: the Combined Code - recommendations from the Conservative Party Working Group on Responsible Business

The Conservative Party Working Group on Responsible Business has proposed some changes to the Combined Code in its (reasonably) recent report "A light but effective touch". The Working Group stated:

Clearly it is one of the roles of company boards to help define the standards and values of the company. The Combined Code on Corporate Governance does contain a reference to the board’s role in setting the company’s values and standards (Code A.1 The Board). However, we suggest that this is insufficiently clear and requires further serious thought. Further, the tick-box mentality of some companies and investors has led to this clause being overlooked in practice. While the Turnbull Inquiry, a forerunner of the Combined Code, does mention corporate responsibility as a concept, the Combined Code does not make sufficient mention of this. The Working Group believes the Combined Code should make recommendations about incentives, training and corporate responsibility strategy"