New inquiry to look at how good governance can drive innovation

The Institute of Directors Centre for Corporate Governance has today launched a new inquiry into ‘Governance and Innovation’, to explore the extent to which companies’ governance arrangements, and the governance framework within which they operate, encourage or deter innovation.

The inquiry will aim to identify good practices that, if more widely adopted, can help governance to become an active driver of sustainable value creation. The Centre will publish a report on its findings in the autumn, which will include recommendations for action addressed to companies, investors, and policymakers.

As part of the inquiry, the Centre has published a Call for Evidence to enable company directors and executives to share their experience. Investors, policymakers, academics, and others with an interest in encouraging business innovation would also be very welcome to contribute their views and perspectives.

Responses to this consultation can be submitted by email to Georgia.Holden@iod.com, Coordinator of the IoD Centre for Corporate Governance. The deadline for responses to this consultation is 12^th August 2022.

Respondees to the consultation will also be invited to participate in roundtable meetings at which the Centre will share emerging findings and invite views on possible recommendations. These meetings are provisionally scheduled to take place in September 2022.

Dr Roger Barker, Director of Policy and Governance at the Institute of Directors said:

“For some, the connection between corporate governance and innovation may not necessarily be obvious. This study seeks to test the hypothesis that good governance can actually be a key driver of an innovative organisational culture. In particular, an effective board of directors can be instrumental in opening up a company to new ideas and ways of working. We hope that the business community will share their experiences and enable us to identify how governance can make a significant impact on organisational potential.”

Chris Hodge, Senior Advisor at The Institute of Directors Centre for Corporate Governance said:

“Innovation has long been recognised as essential for value creation, both for individual companies and for the UK economy as a whole. The development and adoption of new ideas, processes and technologies is a significant driver of economic growth and productivity, and will be crucial to efforts to transition of the economy away from fossil fuels and carbon-intensive business activities.”