The ASX Corporate Governance Council is consulting on the fourth edition of its principles and recommendations, with a new focus on ethical and socially responsible behaviour.
The fourth edition of the ASX Corporate Governance Principles and Recommendations has been released for consultation, with Friday, 27 June 2018 set as a closing date for submissions.
The Council's proposed changes respond to “some of the governance issues identified in recent inquiries, such as the Hayne royal commission”.
The most notable change is to the third (of eight) principles, which was previously "3. Act ethically and responsibly: A listed entity should act ethically and responsibly."
It has been changed in the fourth edition to "3. Instil the desired culture: A listed entity should instil and continually reinforce a culture across the organisation of acting lawfully, ethically and in a socially responsible manner."
The new focus on culture is, perhaps, unsurprising given the focus on culture by APRA, ASIC and the government in the past year.
The fouth edition will also address the social licence to operate, whistleblower policies, anti-bribery and corruption policies, gender diversity, carbon risk and cyber risks.