The Government has appointed a new industry group to “lead a step change” in the way large private corporations are run.
James Wates will lead the group, including members from the Financial Reporting Council, the Institute of Directors, and the Trades Union Congress, among others.
He says the aim of the group is to draw up the UK’s “first-ever set of guiding principles” for large private companies.
The creation of the group follows a long history of poor transparency and accountability across national and international firms.
Mr Wates said the group would address concerns that a minority of companies are falling short of the high standards expected of them.
“I am delighted to have been asked to chair this very important piece of work. I feel passionately that good business, well done, can be a force for good in society,” he said.
“I hope that the standards produced through this effort will help promote and enable ever-stronger and more consistent corporate governance amongst large private companies, which generate significant value for the UK economy and society.”
Business Secretary Greg Clark added: “The UK is rightly recognised as having a world-leading business environment and responsible business practices – a key part of our Industrial Strategy.
“But concerns that some companies are stepping out of line by ignoring employees’ concerns need to be addressed and that is why I am delighted to appoint a chair to lead this important step change in the way large private companies are run.”
It is believed that the new laws will apply to companies with either 2,000 or more employees or a turnover above £200 million and a balance sheet over £2 billion.