Business Ethics and Corporate Governance, Second Edition

CADBURY COMMITTEE ON CORPORATE GOVERNANCE, 1992

The stated objective of the Cadbury Committee was ‘to help raise the standards of corporate governance and the level of confidence in financial reporting and auditing by setting out clearly what it sees as the respective responsibilities of those involved and what it believes is expected of them’.¹

The Committee investigated the accountability of the board of directors to shareholders and to the society. It submitted its report and associated ‘Code of Best Practices’ in December 1992 wherein it spelt out the methods of governance needed to achieve a balance between the essential powers of the board of directors and its proper accountability.

The resulting report and associated ‘Code of Best Practices’ ...