In the UK, the US and many other countries, existing board election processes mean shareholders rely almost entirely on existing board members to identify board candidates. In the vast majority of cases, shareholders have no real say over who is chosen to represent their interests and those of the company they own. Board nomination committees are sub-committees of the board itself. Over the last 10 years, Sweden has moved away from such a system. This report examines the Swedish experience of shareholders taking this key governance function into their own hands. The report also considers lessons that can be drawn for governance in the UK and other countries with dispersed shareholdings.  It  concludes with an agenda for action by listed companies, institutional investors, the Institutional Shareholders Committee  and the Financial Reporting Council. 

In order for the true cost of carbon to be represented in the market, its effects on the environment must be captured like any other externality, and subject to the same laws of supply and demand, setting a dynamic price of emissions in business.This article by the Z/Yen Group examines the two primary market mechanisms available – cap-and-trade schemes, and carbon tax. For more information go to www.london-accord.co.uk

  There is plenty of research evidence documenting the business benefits from high-trust business relationships. Unfortunately at times like this (2009), the knee-jerk crisis reaction of many companies is to squeeze suppliers harder rather than to combine a call for greater efficiency with a collaborative approach to finding sustainable solutions. One study documented in A Guide to Trust (by the Relationships Foundation with Ci) examined supply chain relationships in the motor industry and found dramatic benefits for those with high-trust relationships: Design and distribution ideas were shared, and purchasers handled twice the value of goods when dealing within highly trusted manufacturers. In another industry, Jim Sierck of Xerox USA estimated that the bureaucratic structure created to handle the lack of trust in their buyer/supplier relationships cost them around 7 cents in the dollar.The evidence is clear: If you want efficiency, you need to release all the available talent,...

We argue that tomorrow’s company will be operating in an era and a new business environment in which value creation depends on environmental and social issues as much as on economic ones – what we call the ‘triple context’. More than ever, companies will need to think in terms of their own sustainability and that of the ecosystems and communities in which they operate. We believe this means that companies should think afresh about what they mean by ‘talent’. At present most companies reserve the word ‘talent’ for high fliers who are destined to become top executives or high-level specialists. This is too narrow a view for a world with multiple challenges, needing people with a wide range of capabilities. Talent, we argue, is all around us waiting to be unleashed. Contrary to popular belief and practice we argue that ‘talent’ should not be seen as a rare quality, but a diverse, multifaceted one that exists in everyone; it is abundant. It is a nice quirk of the English language that...