Information on various business models which provided information on corporate governance, its principles and ethics, was obtained from the internet. The main business model used was the UK Corporate Governance Code with minor referencing to the Saylor Foundation and the OECD principles of corporate governance.. Surprisingly enough, the South African King IV Report on corporate governance is very similar to the UK Corporate Governance Code – “a set of voluntary principles and good practices of corporate governance (Werksmans Attorneys, 2016).
Corporate governance is described in the BPP ACCA Approved study text Paper P1 as “the system by which organisations are directed and controlled (Cadbury report)” (BBP Learning Media Ltd, 2016). The same study text reports that “corporate governance is a set of relationships between a company’s directors, its shareholders and other stakeholders” (BBP Learning Media Ltd, 2016).
UK Corporate Governance Code
According to BPP ACCA Approved study text Paper P1, various reports and codes were published (such as Greenbury Code, Hampel Report, Cadbury Report) which were then combined to form the UK Corporate Governance code suggesting the best ethical business practices that companies should follow (BBP Learning Media Ltd, 2016). UK public listed companies are required to state in their financial statements as to how they have applied the UK Corporate Governance Code (Financial Reporting Council, 2016).
The Code recommends five levels of performance with regard to the ” leadership and effectiveness, remuneration, accountability and relations with shareholders” to which organisations should comply (Financial Reporting Council, 2016). These are briefly explained below: