The Financial Reporting Council (‘FRC’) has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles.
The FRC report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.
The research shows that companies are grasping the spirit of the Wates Principles in their governance reporting. They are using the principles as a tool for self-reflection and improvement, and seeing the yearly governance reporting as an opportunity, not a burden.
This research also includes examples of good reporting and acknowledges that it is too early to draw too many conclusions as most companies were in their first cycle of reporting. The financial sector was the biggest adopter of the Wates Principles.
The report outlines the take up of each of the six governance principles, as well as a range of company specific examples of good practice and disclosure reporting.
Sir James Wates, Chair of the Wates Principles Coalition Group, said,
“This research gives us a valuable insight into how the Wates Principles are being applied, providing in particular the timely and rigorous analysis we need to inform public policy decisions about corporate governance. The research shows companies are grasping the spirit of the Wates Principles, and I would expect them to use this report to guide continual improvements in their reporting.”
To read the full FRC Report click on the Download link above.