Why is corporate governance important for investors?
Corporate governance is a material issue for all companies. Poor practices – including a lack of diversity, unlinked executive pay to returns and a failure to manage ESG risks, among many others – can impact company performance and cause reputational damage, exposing shareholders’ investments to significant risk.
There have been many examples of poor corporate behaviour in Australia, and too often, investors and the wider community have borne the consequences.
ACSI has been at the forefront in highlighting the evidence-based importance of corporate governance and ESG issues to reputation, profitability, sustainability and social licence to operate.
Our areas of focus on corporate governance include board composition and accountability, executive remuneration and capital raising practices.
How do we engage on corporate governance?
We engage directly with listed companies our research identifies as having deficient governance performance.
Engaging, promoting good governance and providing guidance on incorporating principles of good governance into corporate practices leads to better investor outcomes for our members.
ACSI’s Governance Guidelines clearly outline our members’ expectations about the governance practices of the companies in which they invest.