British American Tobacco ranked number one in good governance index
9 September 2016
British American Tobacco’s commitment to high standards of corporate governance has been reflected in the Group’s number one ranking in a new index of FTSE 100 companies.
The Institute of Directors’ (IoD) Good Governance Report , published this month, has placed BAT at the top of an index of UK-listed FTSE companies in terms of corporate governance performance.
Commenting on the news, Simon Cleverly, BAT’s Group Head of Corporate Affairs, said: “For us, high standards of corporate governance are a fundamental element that underpins the sustainable, long-term growth of our business. We are very pleased to see this commitment being recognised in the IoD report.”
The IoD’s index combines measurable factors with the views of investors, business leaders and governance professionals. The study looked at 34 factors across five areas of corporate governance: board effectiveness, audit and risk/external accountability, remuneration and reward, shareholder relations and stakeholder relations. The choice of factors is guided by the UK Corporate Governance Code and the Companies Act 2016.
Alongside the measurable factors, the IoD ran a survey that produced 1,977 ratings of companies on their corporate governance, from 744 individual respondents. The responses were drawn from members of the IoD, the Institute of Chartered Accountants in England in Wales, the Institute of Chartered Secretaries and Administrators, FTSE 350 company secretaries and other governance and investment professionals.
BAT’s approach to upholding the highest standard of corporate governance has been outlined in its recent Corporate Behaviour Sustainability Focus Report, which was published on 5 September 2016.