Investor Stewardship and the UK Stewardship Code: The Role of Institutional Investors in Corporate Governance

This book critically assesses the development of the Stewardship Code 2020, which sets out principles for institutional investors in corporate governance. It discusses the regulatory framework's evolution before and after the financial crisis, critiques the Code from a practical and academic perspective, and evaluates the FRC's position. It offers insight into different pathways for the evolution of stewardship.

Format: Paperback / softback
Length: 78 pages
Publication date: 22 September 2022
Publisher: Springer Nature Switzerland AG

This comprehensive book delves into the critical evaluation of the development of the Stewardship Code 2020, a pivotal regulatory framework that outlines the principles governing the role of institutional investors in corporate governance. It explores the historical evolution of the regulatory framework for stewardship, particularly in the aftermath of the financial crisis, leading to the introduction of the 2020 Code. The book offers a multifaceted analysis, encompassing both practical and academic perspectives, examining the strengths and weaknesses of the Code. Additionally, it assesses the broader regulatory framework, particularly the role of the Financial Reporting Council (FRC), in promoting responsible investment practices.

Drawing from a wealth of research and expertise, the book concludes by offering insightful perspectives on the future trajectory of stewardship. It explores potential avenues for further evolution, considering the evolving needs of investors, corporations, and society as a whole. This book is of utmost relevance to an international audience of academics, regulators, and policymakers engaged in financial regulation, investment regulation, and financial services. It provides valuable insights and recommendations for shaping the future of responsible investment and corporate governance.

Introduction:
The Stewardship Code 2020 represents a significant milestone in the evolution of corporate governance practices. It sets out principles and guidelines for institutional investors to promote responsible investment and enhance corporate performance. The Code aims to address the concerns raised by the financial crisis and to ensure that investors are held accountable for their actions.

Historical Evolution of Stewardship:
Before the introduction of the 2020 Code, the regulatory framework for stewardship was relatively limited. However, the financial crisis of 2008 highlighted the need for greater transparency and accountability in the investment industry. As a result, various initiatives were launched to promote responsible investment practices.

The 2020 Code:
The 2020 Code is a comprehensive set of guidelines that aim to improve the quality of corporate governance and promote long-term sustainable value creation. It covers a wide range of topics, including board composition, shareholder engagement, risk management, and environmental, social, and governance (ESG) considerations.

Practical and Academic Perspectives:
The book critically evaluates the 2020 Code from both practical and academic perspectives. It assesses its effectiveness in promoting responsible investment practices and its impact on corporate governance. It also examines the challenges and opportunities that arise from the implementation of the Code.

Regulatory Framework:
The book also assesses the broader regulatory framework, particularly the role of the FRC, in promoting responsible investment practices. It discusses the FRC's approach to stewardship and its efforts to encourage investors to consider ESG factors in their investment decisions.

Conclusion:
In conclusion, this book provides a comprehensive and critical evaluation of the development of the Stewardship Code 2020. It offers valuable insights into the historical evolution of stewardship, the practical and academic perspectives on the 2020 Code, and the broader regulatory framework. The book concludes by offering suggestions for further evolution of stewardship practices, ensuring that they remain aligned with the evolving needs of investors, corporations, and society as a whole.

Weight: 127g
Dimension: 210 x 148 (mm)
ISBN-13: 9783030871543
Edition number: 1st ed. 2021