Taking the Overseas Blinders Off Corporate Governance

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In its annual Good Governance report, writes Fair Observer, the Institute of Directors  assesses the United Kingdom’s largest listed companies against indicators that include board effectiveness, audit and risk accountability, remuneration, shareholder relations and stakeholder relations. Ironically, the IoD index’s top performers often come from the alcohol and tobacco industries. This year’s report gave pride of place to the distiller Diageo and the 2016 winner was British American Tobacco (BAT). The IoD’s standards may be appropriate for how these companies behave in London. In Kinshasa, Kampala and Juba, though, the praise of BAT surely raises eyebrows. As the rest of the world has learned over the intervening months, above-board corporate behavior in the UK does not guarantee ethical conduct elsewhere. Over the summer, The Guardian revealed in a series of explosive investigative pieces that BAT (as well as other multinational tobacco firms) has been ruthless in staking out market share and seeing off health regulations in African markets. BAT and its allies have threatened governments in some eight African countries to counteract policies that have underpinned public health initiatives in Western markets.