Research co-sponsored by SJ Berwin reveals that company directors' misunderstanding of their legal duties remains one of the key barriers to sustainable competitive success.
The report, 'Tomorrow's company inquiry' advocates the “inclusive approach”, as essential for successful companies.
This entails building reciprocal relationships with all 'stakeholders' – employees, customers, suppliers and the community – in a spirit of partnership.
SJ Berwin corporate finance partner Philip Goldenberg acted as the report's legal adviser.
One of the report's major findings is that many directors fail to understand their legal duties.
They think that company law pushes them towards pleasing the current body of shareholders rather than securing the long-term health of the business.