Directors' duties: Continuing with the theme of change, from 1 October 2007, the controversial enlightened shareholder value' duty in the Companies Act 2006 will require directors to have regard to various 'corporate social responsibility' factors including the interests of employees, suppliers, consumers and the environment. We provide a link to guidance issued by GC 100 (a group that brings together the senior legal officers of more than 70 FTSE100 companies) that sets out how directors should comply with this new duty.
These changes aren't 'controversial'. They reflect the will of parliament and the only people who found them 'controversial' were those who thought profit came before all else. Note too the inverted commas around 'corporate social responsibility'. I guess they imply that the ICAEW does not believe in any such thing.
Inspiring confidence? I don't think so. I think that this is an organisation with its head in the sand that denies the role of accountants and business in society.