Accountability

In its broadest sense, accountability in the corporate context, refers to the extent to which corporate agents, primarily managers and directors, take responsibility for actions taken within the corporate. Responsibility for the consequences of corporate actions extends to stakeholders including shareholders, loan creditors, trade contacts, employees and society. Accountability is an area of corporate governance which has enduringly drawn the attention of policymakers and scholars. Often viewed from a financial perspective, accountability has been promoted in UK best governance practice guidelines since the publication of the Cadbury Report in 1992. Over time, the need for accountability to parties beyond those with financial interests in the corporate has been recognised and the standards of accountability expected in the corporate environment have extended and increased. This article reviews the evolution of the concept of accountability within the UK corporate governance regulatory framework and considers the extent to which the current guidelines serve to promote accountable corporate activity in an inclusive and sustainable manner.