The new Corporate Governance Code from the Financial Reporting Council demonstrates that business is unwilling to embrace the fundamental changes that are needed both to address issues of trust in our economic system and to solve our productivity crisis, Prospect has warned.

Responding to the new code Prospect general secretary Mike Clancy said:

“This new code clearly demonstrates that even a scandal like Carillion is not enough to convince corporate Britain the they need to fundamentally change their governance, principles, and mind-set.

“It is welcome that the need for workforce engagement is recognised in this code, but not including trade unions in the list of acceptable methods for listening to workers tells anyone that independent voice is not welcomed.

“The truth is that as long as corporate Britain continues to see their workforce as just another stakeholder to be appeased, rather than the foundation of prosperity and innovation in our economy, they will fail to make the reforms needed to move towards a more productive and sustainable economic model.

“If business is unwilling to reform itself, then there needs to be a much firmer lead from government, going beyond simply workers on boards and making collective bargaining mandatory for large firms as a key part of an industrial strategy focused on solving our productivity crisis.”