New corporate governance reforms could help boost health and safety in the workplace, according to the Institution of Occupational Safety and Health (IOSH).
A report has been produced by the Business, Energy and Industrial Strategy (BEIS) Select Committee looking at corporate governance failings.
It follows the public and major failings of large organisations like BHS.
Room for improvement
And while it says that, on the whole, the UK’s corporate governance is strong, it adds that the pressure for some companies to deliver short-term financial gains for shareholders can lead to governance failures.
The report’s authors believe this means a series of reforms are now needed to make sure directors “take more seriously their duties to comply with the law and the code relating to corporate governance”.
These include more transparency, better reporting, more employee involvement and tougher enforcement, as well as areas that IOSH recently touched upon in its submission to the Corporate Governance Reform Green Paper.
Touches upon OSH issues
Richard Jones, Head of Policy and Public Affairs at IOSH, said they’re encouraged to see the committee’s views align with IOSH’s recommendations on occupational safety and health (OSH) and improved corporate reporting.
IOSH says OSH can be improved through stronger stakeholder engagement, a bigger focus on board member training, codes for privately-held companies, and linking bonuses to broader corporate responsibilities, such as safety and health.
Mr Jones said: “These proposed corporate governance reforms are important ways in which better leadership, effective occupational safety and health and more responsible business practice can be fostered and we urge the Government to give them serious consideration.”
Date Published: April 28, 2017
Author: Jonathan Brown