Forthcoming Principles and Recommendations focus on corporate culture

  • The ASX Corporate Governance Council views the changes as a necessary response to restore trust in business and avoid potentially more onerous regulatory intervention.
  • Principle 3 has been revised in recognition of the fundamental importance of a listed entity’s social licence to operate.
  • The council envisages that the final version of the fourth edition will be released in early 2019.

Abstract view of flying screens showing multiple media

As corporate misconduct continues to dominate headlines, the ASX Corporate Governance Council is maintaining focus on corporate culture with the publication of its Corporate Governance Principles and Recommendations, 4e (Principles and Recommendations) released on 2 May 2018 for public consultation.

Among other refinements to the existing principles, a clear theme in the revised Principles and Recommendations is the governance of non-financial risk. Consistent with the APRA Final Report of the Prudential Inquiry into the Commonwealth Bank of Australia, ASIC Enforcement Review and various Senate inquiries into financial services, the Principles and Recommendations highlight ‘governance issues arising from poor conduct or culture and a perceived lack of accountability’.

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