Despite the politicians’ predilection for a ‘tick box’ approach to corporate governance in the US and EU, the UK has so far avoided the dangerous notion that, once you have ticked all the boxes, then you can do anything else. Remember, it is said that a key part of the Enron defence is that it was 100% compliant under the existing US Codes. And unwrapped copies of the Enron code of ethics are now collectors’ items on e-Bay.
Since the 1992 Cadbury Report into the Financial Aspects of Corporate Governance, the UK has taken a more balanced ‘comply or explain’ approach.
