The board’s governance committee may wish to consider a new report on corporate governance principles, "Tenets of Good Corporate Governance,” released on May 9 by the The Association of Chartered Certified Accountants (ACCA).
The ACCA report speaks to the importance of proper corporate governance in fostering a positive relationship between business and society. It has a broad scope, addressing governance issues on a global scale and across industry sectors. Nevertheless, its concentration on matters of greater diversity and balance on corporate boards and the compensation gap between the top and the bottom of the company have increasing relevance to health systems and other health industry companies.
The focuses on five key issues: (1) The relationship between companies and society; (2) Diversity and balance; (3) Enabling an effective board; (4) Executive remuneration; and (5) Gatekeepers of corporate governance. Of particular interest to the health system governance committee are the report’s observations on evolving business models, continued concentration on corporations on social responsibility, pay equity, and board effectiveness.
In many respects, the two statements on governance principles released in mid-2016 (The Business Roundtable and The Commonsense Principles) continue to be superior resources for health system governance committees on governance trends and principles. However, reports such as those prepared by ACCA provide useful balance and direction on global trends in corporate governance. This is a perspective of increasing value to health system governance committees that are rapidly diversifying on both horizontal and vertical levels, including with corporate partners that are global enterprises.