The fall-out from the collapse of BHS and the alleged flouting of employee rights on minimum wage and working conditions at Sports Direct have promoted the Department of Business, Innovation and Skills to launch an inquiry into wider corporate governance issues. “Irresponsible business behaviour and poor corporate governance certainly act against the interest of workers, but they also act as a brake on long-term prosperity and profitability in companies, as well as tarnishing the reputation of business and undermining public trust in enterprise,” said Ian Wright, chair of the BIS. “We need to look at the laws that govern business and how they are enforced. Good corporate governance shouldn’t be a hindrance to business; it can contribute to companies’ long-term prosperity and performance as well as showing the world that a business is transparent, accountable and responsible”.
The vast majority of businesses are well run and are concerned that their reputations are being impacted by the ill considered actions of other organisations in their sectors. Most broadly welcome seeing businesses which flout the law brought to task although there is an understandable desire not to see further red tape introduced.
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