The past few years have seen a continuing debate about the purpose of capital markets and the role of companies and investors in solving as opposed to contributing to economic, environmental, and societal problems. The FRC has actively led and participated in that debate, made substantial changes to the UK Corporate Governance Code, the UK Stewardship Code, and introduced new principles of corporate governance for large private companies (the Wates Principles). These changes broaden the scope of governance and stewardship, and in particular address how the actors in capital markets interact with a wider set of stakeholders to deliver sustainable value and benefit the economy, environment and wider society.
Financial Reporting Council (FRC), Annual Review of the UK Corporate Governance Code, January 2020, executive summary, p1.
Identify, explain and critique the substantial changes and new principles for large private companies referred to in the quotation in order to assess whether they are capable of producing companies and investors who solve economic, environmental and societal problems.