Yesterday, I went to a truly inspiring event about the huge Mondragon co-operative based in the Basque country. The event was hosted by The Young Foundation (YF) and supported by Co-operatives UK. The focus of the event was to showcase the excellent research by YF into the Mondragon model which can be found here.
This morning the House of Commons Select Committee on Business, Energy and Industrial Strategy reported on its inquiry into corporate governance in the UK. Pointing to recent scandals and a ‘worrying lack of trust’ in business among the public, it makes several recommendations for action.
The past few weeks have seen significant political upheaval. Not only has the country voted to leave the EU, but we now have a new Prime Minister, and a leadership contest within the main Opposition party.
You'd be forgiven for wondering where inequality fits into all this, and whether politicians will take their eye off the ball to focus on other concerns. But amidst this turmoil have been some encouraging noises from key political figures, from a range of parties.
This morning Policy Exchange released an excellent report that conducts a thorough analysis of the failures of corporate governance. They point out that boards can lack experience in the relevant industry, too often consist of the usual suspects of the corporate mainstream, lack independence from management and fail to hold onto institutional memory. Policy Exchange’s recommendations of providing investors a stronger say in board nominations through adopting a system similar to that used in Sweden are well worth a hearing and should be studied closely.