The guidance identifies ten principles to guide the way boards approach these issues. They cover: identifying key stakeholders; the composition of the board and development of directors; the way in which boards receive and process information; designing appropriate engagement mechanisms; and reporting and feedback to shareholders and stakeholders.

Chris Cummings, CEO, Investment Association, said: ‘Investors want companies to take decisions which will generate the best long-term value to their shareholders. To make such decisions, boards need to hear and take account of the views of their stakeholders. Failure to do so, could impact on the future success of the company.

‘The guidance launched today, provides practical steps for UK companies to consider how they ensure their stakeholder voice is represented in the boardroom. It is also outlines how companies report on their stakeholder engagement activities and the impact engagement has had on the board’s decision making.’

The guidance on the stakeholder voice in board decision making is available here.

 Report by Pat Sweet