The Association of Chartered Certified Accountants released a report Wednesday on the importance of proper corporate governance in fostering a positive relationship between business and society.

The ACCA report, "Tenets of good corporate governance," discusses various issues in global corporate governance practice, including calls for greater diversity and balance on corporate boards and the compensation gap between the top and the bottom of the company.

The report focuses on five key issues:

• The relationship between companies and society

• Diversity and balance

• Enabling an effective board

• Executive remuneration

• Gatekeepers of corporate governance

The report discusses the need for organizations to contemplate their business model and how it may look in the future.

“While the corporate governance debate has come some way over the last decades, many still see it as a compliance exercise. However, some companies are exceeding existing best practice which, combined with a change in public perception, should raise the standard of practice over time,” said Jo Iwasaki, head of corporate governance at ACCA, in a statement. “Hopefully this report helps businesses to examine their vision and strategic direction in a broader context, which will in turn allow their companies to achieve long term growth.”

The report is part of ACCA’s tenets series, which also includes reports on tax, business law and corporate reporting. The report and the rest of the series are available here.

From ACCA report on "Tenets of good corporate governance"
From ACCA report on "Tenets of good corporate governance"

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