This paper critically analyses the evolution of the UK’s key domestic regulatory standard for ste... more This paper critically analyses the evolution of the UK’s key domestic regulatory standard for stewardship by institutional investors, the UK Stewardship Code (‘SC’, ‘the Code’), the second major iteration of which was introduced in 2020, ten years after the Code was first established.
The discussion is framed by an examination how the Code emerged from the theory and practice of corporate governance in the UK, which I argue can be characterised by competing ‘stakeholder’ and ‘shareholder’ perspectives. Through documentary analysis of the new Code, and its associated consultation process, it is argued that the code represents the institutionalisation of an expanded concept of stewardship embracing environmental, social and governance (ESG) considerations.
Moreover, the concept of stewardship represented by the Code is interpreted as a ‘third way’ to the traditional stakeholder and shareholder perspectives in corporate governance. Finally, the paper concludes by cautiously arguing that the new version of the Code is more likely to succeed than its predecessor by incentivising behaviours which have been shown internationally to have led to the growth of stewardship by institutional investors, and through its strengthened monitoring and transparency requirements for signatories.
This paper critically analyses the evolution of the UK’s key domestic regulatory standard for ste... more This paper critically analyses the evolution of the UK’s key domestic regulatory standard for stewardship by institutional investors, the UK Stewardship Code (‘SC’, ‘the Code’), the second major iteration of which was introduced in 2020, ten years after the Code was first established.
The discussion is framed by an examination how the Code emerged from the theory and practice of corporate governance in the UK, which I argue can be characterised by competing ‘stakeholder’ and ‘shareholder’ perspectives. Through documentary analysis of the new Code, and its associated consultation process, it is argued that the code represents the institutionalisation of an expanded concept of stewardship embracing environmental, social and governance (ESG) considerations.
Moreover, the concept of stewardship represented by the Code is interpreted as a ‘third way’ to the traditional stakeholder and shareholder perspectives in corporate governance. Finally, the paper concludes by cautiously arguing that the new version of the Code is more likely to succeed than its predecessor by incentivising behaviours which have been shown internationally to have led to the growth of stewardship by institutional investors, and through its strengthened monitoring and transparency requirements for signatories.
Uploads
Papers by Ruben Brooke
The discussion is framed by an examination how the Code emerged from the theory and practice of corporate governance in the UK, which I argue can be characterised by competing ‘stakeholder’ and ‘shareholder’ perspectives. Through documentary analysis of the new Code, and its associated consultation process, it is argued that the code represents the institutionalisation of an expanded concept of stewardship embracing environmental, social and governance (ESG) considerations.
Moreover, the concept of stewardship represented by the Code is interpreted as a ‘third way’ to the traditional stakeholder and shareholder perspectives in corporate governance. Finally, the paper concludes by cautiously arguing that the new version of the Code is more likely to succeed than its predecessor by incentivising behaviours which have been shown internationally to have led to the
growth of stewardship by institutional investors, and through its strengthened monitoring and
transparency requirements for signatories.
The discussion is framed by an examination how the Code emerged from the theory and practice of corporate governance in the UK, which I argue can be characterised by competing ‘stakeholder’ and ‘shareholder’ perspectives. Through documentary analysis of the new Code, and its associated consultation process, it is argued that the code represents the institutionalisation of an expanded concept of stewardship embracing environmental, social and governance (ESG) considerations.
Moreover, the concept of stewardship represented by the Code is interpreted as a ‘third way’ to the traditional stakeholder and shareholder perspectives in corporate governance. Finally, the paper concludes by cautiously arguing that the new version of the Code is more likely to succeed than its predecessor by incentivising behaviours which have been shown internationally to have led to the
growth of stewardship by institutional investors, and through its strengthened monitoring and
transparency requirements for signatories.