A new inquiry has been established to explore the extent to which companies’ governance arrangements and the governance framework can encourage or deter innovation.
Innovation has long been recognised as an essential element for value creation, both for individual firms and the economy as a whole. The inquiry, which has been launched by The Institute of Directors Centre for Corporate Governance, aims ‘to identify good practices that, if more widely adopted, can help governance to become an active driver of sustainable value creation.’
In essence, the study is seeking to determine whether good governance can be a key driver of an innovative organisational culture. A key focus of the inquiry will therefore be to determine whether an effective board of directors can be instrumental in opening up a company to new ideas and ways of working.
As part of the inquiry, the Centre has published a call for evidence in order to enable company directors and executives to share their experiences on issues relating to governance and innovation. The deadline for submitting responses to the consultation is 12 August 2022, with the final report, which will include recommendations for companies, investors and policymakers, due to be published in the autumn.