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15 - Market-Led Sustainability through Information Disclosure

The UK Approach

from Part III - Corporate Law, Corporate Governance and Sustainability: Case Studies

Published online by Cambridge University Press:  25 November 2019

Beate Sjåfjell
Affiliation:
Universitetet i Oslo
Christopher M. Bruner
Affiliation:
University of Georgia
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Summary

This chapter shows that the UK relies on information disclosure and market forces to steer companies towards greater sustainability, leaving company law and corporate governance largely free to focus on shareholder value. It traces the twentieth century regulatory and policy changes which reoriented the UK’s system from managerialist to shareholder-centric, before analysing the 2006 reforms, which are supposed to promote ‘enlightened shareholder value’ through directors’ duties and disclosure. Finally, the chapter considers recent developments that attempt to use information disclosure to promote a long-term approach, including giving shareholders stewardship responsibilities and a ‘say on pay’, making changes to takeover regulation, and requiring companies to make disclosures in relation to modern slavery. None of these recent measures have been successful, and the chapter concludes that far-reaching reforms to corporate governance are urgently needed.

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Publisher: Cambridge University Press
Print publication year: 2019

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