One of the UK’s most influential political commentators has
suggested that major companies should face de-listing from the Stock
Exchange if they fail to produce adequate performance indicators on
social, ethical and environmental targets.
Will Hutton,
chief executive of the Industrial Society and author of the
best-selling book The state we’re in, says the government should force
companies to compile and publish ethical performance indicators drawn
up in consultation with stakeholders.
In an essay to mark
the Industrial Society’s ‘leadership week’, Hutton says the indicators
should then be publicly audited, with ‘corrective action’ taken when
the targets are not met and ‘de-listing [from the Stock Exchange] held
in reserve as the ultimate sanction against companies which do not
comply with the new standards.’
He says increasing support
for corporate social responsibility from business and the public will
compel the government ‘to codify, upgrade and even legislate for
changes in company law and audit in a way from which until now it has
shrunk.’ And he adds: ‘Voluntarism and reform minimalism will no longer
serve.’
