ICAEW has launched a paper designed to encourage broader debate about the role of companies and the existing models of corporate governance.

The paper, What should companies be responsible for? A dialogue in corporate governance,argues that a company needs to be sensitive to the full range of its responsibilities, which includes issues such as aggressive tax avoidance, diversity and executive remuneration.

By doing so, ICAEW says, legislators and regulators can turn their attention to developing relevant but proportionate regulations for specific corporate needs.

In its introduction to the paper, ICAEW says that current controversies about executive pay, tax arrangements and boardroom diversity should not be viewed 'as topical and fleeting matters', but rather as 'symptoms of a misalignment between today's markets and corporate governance frameworks'.

It proposes that companies should not just be about generating profits for shareholders but should acknowledge a wider range of responsibilities. The ICAEW paper suggests that these are: achieving a business purpose; behaving in a socially acceptable way; complying with law and regulations; as well as acknowledging and answering for their actions.

Jo Iwasaki, ICAEW head of corporate governance said: 'We accept that our proposal is more challenging than to simply focus on making profit. There are many current issues in corporate governance which companies need to take responsibility for. These responsibilities are real, and ignoring them does not diminish their importance or make them go away. This paper will challenge boards to question their responsibilities and oblige them to answer to shareholders about their actions.'

ICAEW is inviting views on the paper and will be holding a series of interactive events to encourage debate on this issue. There are more details at ICAEW.