‘Good leaders shape the world we live in’
LAST month, the UK Government published its longawaited white paper on audit reform and corporate governance titled ‘Restoring trust in audit and corporate governance’.
The paper represents the government’s response to the Brydon, Competition and Markets Authority, and Kingman reviews, each of which addressed different aspects of the audit industry, corporate governance, and the role of the Financial Reporting Council (FRC).
Although the proposals largely relate to larger companies, there are some key issues that all directors need to be aware.
These include reporting requirements, the transformation of the FRC into the Audit, Reporting, and Governance Authority (ARGA) alongside new powers and the change of definition of a Public Interest Entity to encompass a wider range of entities, including large private companies.
These are complex matters that, for most of us, will appear to be specialist topics best left to professional advisors.
However, they are also good examples of exactly why all directors, irrespective of size of business or sector, need to be aware of their legal duties and responsibilities, because keeping on top of these can be challenging.
Failing to do so can have serious consequences for those in charge.
You see, good leadership represents a myriad of different characteristics and responsibilities. Some come naturally and others, like compliance and corporate governance duties, need to be learned, because leadership is a craft.
Covid-19 has touched all aspects of our personal and business lives which is why as directors and business leaders move from survival mode towards recovery and bounce back, we all need to be aware of what makes good leadership.
Importantly, good corporate governance and leadership is as important as the agility, compassion and kindness shown by so many leaders throughout the pandemic.
Successful leadership requires resilience; the ability to function and adapt in tough times. The past 13 months would have tested many business leaders to the absolute limit, but as Charles Darwin once said: “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.”
Good leaders respond to setbacks, adapt well, and keep going in the face of adversity.
A man of great strength who led such a long and remarkable life, many of the tributes to HRH Prince Philip, Duke of Edinburgh over the last fortnight have reflected on his natural leadership skills.
Indeed, it is his incredible leadership that will leave such a special legacy for so many future generations to come.
Prince Philip was a tremendous advocate of young people, believing in each individual’s potential and wanting all young people – especially those from marginalised groups – to benefit from the better non-formal educational outcomes, employment prospects, community ties and better mental health that are associated with The Duke of Edinburgh’s Award that he established in 1956.
65 years on and the DofE award is woven into the fabric of the UK, making a long-lasting, positive change to current and future generations by improving self-belief, helping to create responsible citizens and promoting leadership.
Good leaders shape the world we live in. Good directors understand the value of good leadership and the importance of corporate governance; building better teams and better businesses that are robust, agile and supportive of good citizenship.