Sweden’s largest pension fund “Alecta,” through its chief executive Magnus Billing, wants the corporate governance code to reflect meaningful corporate cultures and strong values.
The chief executive hopes that the Swedish Corporate Governance Board will emulate the reforms of the UK Financial Reporting Council (FRC) wherein the companies have a social responsibility to relate to their clients to have long-term sustainable shareholder values.
“A prerequisite for restoring the demolished values is first and foremost the restoration of confidence in the organization and its ability to create long-term sustainable values,” Billing said.
He added that there are not enough clear goals and well-designed strategies and business plans for this to happen.
By next month, the Swedish Corporate Governance Board is expected to submit the revisions to the Swedish Code of Corporate Governance.
Following the revisions, they will push for new recommendations on remuneration and the new code will be implemented by January 1, 2020. It is not expected to make major changes other than the remuneration issues.
Billing cited that it is important that corporations must have a clean organizational culture in light of the recent bank scandals locally and from other European nations.
“In order to be successful in the longer term, the company’s board of directors and its management must build and maintain good relationships with a large number of stakeholders, such as customers, authorities, employees, owners, and others,” the chief executive ended.