DO INSTITUTIONAL INVESTORS PLAY A MEANINGFUL ROLE IN THE EFFECTIVE IMPLEMENTATION OF CORPORATE GOVERNANCE ON SDG?

Objective: Corporate governance is a recent development in Kuwaiti financial markets. Corporate governance principles have created several new concepts, such as the independence of directors, the establishment of various committees, the separation of the CEO from the chairman of the board, and other related principles. This article will discuss how institutional investors can play a meaningful role in the effective implementation of Corporate Governance Principles. The primary aim of this research article is to seek a detailed understanding of the Kuwait Corporate Governance Code (KCGC) as it relates to instituting a special code for institutional investors. Method: Solving legal problems and finding the best way to apply special laws can best be highlighted by using a comparative legal analysis. This methodology allows scholars to compare the laws of several countries to find alternative ways of addressing legal issues. This research article will compare legislation in the developed market in the UK to evaluate its potential effectiveness in averting future problems and bringing a better understanding of this subject in Kuwait. Result & Conclusion: The institutional investor plays an influential role in increasing the effectiveness of the principle of commitment to the ‘Comply or Explain’ regime. In the UK, the stewardship code for financial institutions was issued to give them control and responsibility over the application of the governance system. The article suggests that institutional investors should play a more active role in insisting on the application of corporate governance principles. It considers the ‘Comply or Explain’ regime and how it is being used effectively by companies backed by institutional investors. In addition, a new corporate governance code for institutional investors should be developed, similar to the UK Stewardship Code.


INTRODUCTION
Institutional investors are financial institutions that combine substantial amounts of capital from different sources to establish a sizeable investment fund.Institutional investors include such institutions as pension funds, insurance companies, mutual funds, endowments, foundations, and other large financial institutions; these have increased significantly over the years.(Isaksson & Çelik, 2013, p33).They gather insight and analytical data that help them make informed shareholder decisions.Institutional investors play a crucial role in the financial markets and can exert a significant influence on the businesses they invest in.
Because of the sheer magnitude of their holdings, institutional investors are renowned for their capacity to influence financial markets.Their choices and deeds may affect market trends, corporate governance procedures, and stock prices.Institutional investors often conduct in-depth research and analysis before making investment decisions, and they may actively engage with the companies in which they invest to influence corporate strategies and governance.
By using their sizeable stakes in companies to influence or shape corporate behaviour in ways that are consistent with long-term wealth creation and ethical business practices, institutional investors can have a big impact on corporate governance.This article will attempt to answer the question of what is the role of the institutional investor in increasing the effectiveness of governance rules by influencing the philosophy of the "Comply or Explain" system.

THEORETICAL FRAMEWORK
To learn more about the role of institutional investors in the application of corporate governance rules and principles, it is necessary to explain the concept of corporate governance and the "Comply or Explain" system.
The term 'corporate governance' is a complex term as it relates to various matters such as law, economics, management, accounting, and other subjects, each with its own developments.Corporate governance is the set of policies, procedures, and guidelines that regulate how an organization is managed.It encompasses the relationships between a company's management, its board, shareholders, and other stakeholders.Corporate governance issues also include culture, ownership, and legal arrangements (Mallin, 2013, p.15).Therefore, due to its multi-faceted nature, defining corporate governance is not straightforward (Keay, 2013, p.6).However, under the regulation of corporate governance, laws, rules, and standards define the relationship between a company's management, on the one hand, and shareholders and stakeholders (such as bondholders, workers, suppliers, creditors, and consumers), on the other hand.
The UK Corporate Governance Code 2018 states: "Corporate governance is the system by which companies are directed and controlled.Boards of directors are responsible for the governance of their companies.The shareholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place." This makes it clear that corporate governance focuses on to the interaction between the board and the shareholders in running and managing the business.
The Kuwaiti legislature has defined governance in vague terms, stating that corporate governance is based on a set of rules that represent the foundation on which good governance practices in companies are based.These rules include a set of principles and methodology with the requirements needed to achieve the goals of governance.
Corporate governance can be likened to controlling a car, which involves controlling the steering wheel, the brake, and the accelerator to ensure that the car reaches its destination.(Nordberg, 2011, p.7).This means that corporate governance rules have the potential to define the authority, the approach to risk management, and how to protect a company and its investors.
Consequently, corporate governance is about the relationship between the boards and managers and between the boards and their investors by guiding company actions and monitoring their performance.
The objectives of corporate governance codes vary from one country to another.According to the UK Code, its goal is to deliver a company's long-term success by facilitating effective, entrepreneurial, and prudent management.Corporate governance is about good management by the board.The code is a guide to good management practices.
In the US, there is no official corporate governance code.A company's management, shareholders, and board of directors are bound by fiduciary and managerial responsibilities within a broader societal context that is defined by legal, regulatory, competitive, economic, democratic, ethical, and other societal forces.Each state is free to enact its own set of laws and regulations.
In Kuwait, the Code of 2015 places the issuing of corporate governance rules under the control of the Capital Markets Authority.It states the importance of establishing proper rules for corporate governance to achieve justice, competitiveness, and transparency in the market.Rules of governance here are about principles, systems, and procedures that better protect shareholders.In addition, they state that good governance is based on the promotion of three points.First, ethical behaviour to ensure commitment to ethics and good professional conduct; second, oversight and accountability and, governance rules for shareholders and creditors, etc.Corporate governance continually needs to be developed over time.For example, in the UK, the Financial Reporting Council (FRC) i has stated that, even though the level of corporate governance standards is high, there still is room for improvement.
After the financial crisis of 2007/2008 the level of governance standards in Britain was shown to be higher than anywhere else in the world.(Chambers, 2012, p.350).However, this did not prevent the crisis from happening.
In the last ten years, corporate governance legislation has appeared in several countries aimed at increasing investor protection and confidence, especially in stock markets.Corporate governance principles do not remain static but evolve with the surrounding developments and must continue to develop.As an illustration, the Principles of Corporate Governance were published by the Organization for Economic Co-operation and Development (OECD) in 1999.The OECD governments agreed to revise new principles in 2004.(Joesover & Kirkpatrick, 2005, p.5). Ensuring the basis for an effective corporate governance framework, ensuring the equitable treatment of shareholders (including minority and foreign shareholders), protecting the rights of shareholders, disclosure and transparency, the role of stakeholders in corporate governance, and the effective monitoring of and by the board (responsibilities of the board) are among the most important areas covered by corporate governance principles.

HOW DO INSTITUTIONAL INVESTORS INFLUENCE CORPORATE GOVERNANCE?
Institutional investors have a great deal of power over the businesses they invest in.They have the ability to influence company policies and strategies due to their significant investment positions.Institutional investors have a stake in encouraging sustainable and ethical corporate behaviour because they are long-term investors who want to preserve and increase the value of their capital.As a result, they might support policies that put longterm value creation and sustainable growth ahead of immediate profits.
The following are some of the key ways in which Institutional Investors influence corporate governance in companies.

Active Ownership and Engagement
Institutional investors frequently hold sizable shares in several different businesses.This ownership gives them the right to vote on important matters during shareholder meetings.Institutional investors, as stewards of their investments, may actively engage with company management to ensure that corporate strategies align with the best interests of shareholders.
They actively interact with boards and management of the organization to promote responsible behaviour, sustainable initiatives, and improved governance processes.Instead of being passive shareholders, these entities actively participate in the decision-making processes of the companies they invest in.This involvement includes voting on key issues during shareholder meetings, engaging in dialogues with company management, and proposing governance reforms.
Institutional investors communicate their expectations and concerns to corporate management through constant interaction and communication.This can address several subjects, such as risk management, board makeup, and strategic direction.Furthermore, they may engage in dialogue with the company's board of directors to provide input on key issues, including environmental, social, and governance considerations.
Institutional investors also vote as shareholders on important issues including mergers, executive remuneration, and other matters.Their votes have the power to influence these issues and keep management responsible.
Institutional investors can use proxy voting as a tool to vote on behalf of the shares they manage.To make well-informed voting decisions, they examine proxy statements, company proposals, and advice from proxy consulting firms.

Setting Standards and Best Practices
Institutional investors often advocate for the adoption and adherence to corporate governance standards and best practices.They play a crucial role in the development and promotion of guidelines, such as those outlined by international organizations like the Organization for Economic Co-operation and Furthermore, to protect their investments and reduce risks, institutional investors usually have sophisticated risk management systems in place.They conduct thorough due diligence before making investment decisions and employ diversification strategies to reduce portfolio risk.
In terms of risk management, institutional investors help mitigate potential risks that could affect their investments through regular engagement with boards of directors.This covers matters pertaining to cybersecurity, corporate ethics, and regulatory compliance.
Additionally, shareholder resolutions addressing governance, social, or environmental issues may be proposed by institutional investors.Other shareholders can use these resolutions to show their support for particular modifications to the company's policy.

Fostering Accountability and Transparency:
Institutional investors play a major role in encouraging openness and accountability in businesses.They demand clear and comprehensive financial reporting, ethical business conduct, and disclosure of material information.By promoting transparent communication between companies and their stakeholders, institutional investors help build trust and confidence in the business community.Furthermore, institutional investors enforce regulatory compliance in companies by ensuring that they only invest in companies that comply with the law.Regulations that control their governance-related activities, such as voting procedures, transparency standards, and engagement procedures, will frequently bind them.

Monitoring Board Effectiveness
The effectiveness of a company's board of directors is critical to good corporate governance.Institutional investors play an essential role in monitoring and evaluating the performance of boards, advocating for the appointment of independent directors, and ensuring that boards act in the best interests of shareholders.This oversight helps mitigate conflicts of interest and ensures that strategic decisions align with long-term shareholder value.
The ability to nominate directors for the board is granted to certain institutional investors.This enables them to have a say over the makeup of the board and appoint people who share their viewpoints and beliefs.In addition, several countries have created stewardship codes that encourage institutional investors to actively interact with businesses and support good governance practices.

Long-Term Value Creation
Institutional investors are generally long-term investors.They are interested in strategies that promote sustainable growth and long-term value creation.Their focus on long-term performance may influence companies to adopt practices that enhance financial and non-financial performance over time.
Institutional investors' investment decisions can also influence market trends and asset prices.Their buying or selling activities in specific sectors or asset classes can impact market sentiment and valuations, leading to price movements that may affect overall market dynamics.By providing capital to businesses and infrastructure projects, institutional investors contribute to economic development and growth in Kuwait.Their investments support entrepreneurship, innovation, job creation, and overall economic prosperity.

Monitoring and Evaluation
Institutional investors typically monitor the performance of the companies in which they invest.This includes evaluating the effectiveness of the board of directors, management practices, and financial performance.They may also advocate for improvements in governance structures to enhance transparency and accountability.
Institutional investors are subject to regulatory oversight to ensure compliance with relevant laws and regulations.Regulatory authorities in Kuwait monitor their activities to maintain market integrity, protect investors' interests, and uphold financial stability.

Environmental, Social and Governance (ESG) Considerations
Institutional investors are increasingly integrating ESG factors into their investment decisions.This involves evaluating companies based on their environmental impact, social responsibility, and governance practices.In Kuwait, institutional investors may contribute to the development and implementation of ESG standards within listed companies.

THE ROLE OF INSTITUTIONAL INVESTORS IN KUWAIT
Institutional investors are important players in Kuwait's financial markets and economy.They invest in a diverse range of assets such as stocks, bonds, real estate, and alternative investments, which helps in channeling funds to productive uses within the economy.Furthermore, institutional investors often prefer long-term investments, which can contribute to market stability.Their presence in the market can dampen volatility as they are less likely to engage in short-term speculative trading compared to individual investors.
Institutional investors are integral to the implementation of corporate governance principles, acting as stewards of responsible business practices.
Their active involvement, advocacy for standards, and commitment to accountability contribute to the overall health and sustainability of the global business environment.As the influence of institutional investors continues to grow, their role in shaping corporate governance will remain a key factor in fostering a culture of transparency, fairness, and ethical conduct within corporations.Ultimately, the collaboration between institutional investors and other stakeholders is essential for building a corporate governance framework that promotes the interests of shareholders, enhances business resilience, and contributes to long-term economic growth.
Institutional investors often advocate for the adoption and adherence to corporate governance standards and best practices.In Kuwait, as in many other jurisdictions, international standards such as those provided by the OECD may serve as a basis for promoting good governance.Kuwaiti institutional investors also participate in international markets, diversifying their portfolios and seeking attractive investment opportunities abroad.This global investment approach enables them to access a broader range of assets and potentially enhance risk-adjusted returns.
Overall, institutional investors in Kuwait play a multifaceted role in the financial markets and economy, contributing to capital formation, market efficiency, corporate governance, risk management, and economic development.Their actions and decisions have far-reaching implications for investors, businesses, and the broader society.

RESULTS AND DISCUSSION
The "Comply or Explain" principle is a governance approach commonly used in corporate governance frameworks, particularly in the context of codes of corporate governance.This principle essentially requires companies to either comply with specific corporate governance practices or provide an explanation if they choose not to comply with certain recommendations or guidelines.
A "Comply or Explain" regime can be described as an alternative way to achieve strong regulation.It strikes a balance between soft law and hard law that can be suitable in today's complex economic world.The "Comply or Explain" approach has both advantages and disadvantages.Michelle Edkins, a corporate governance expert and Managing Director of Corporate Governance and Responsible Investment at BlackRock Inc., summarised the advantages and disadvantages of this system by saying that: "Comply or explain" has its limitations, poor explanations, differences of opinion between management and shareholders, different views as to the right approach amongst shareholders, lack of resources for engagement, and limits on the scope of some shareholders to be pragmatic.Nonetheless, "Comply or Explain" offers more flexibility than the alternative.Companies can set out their case and, whether agreement is reached or not, engagement helps build mutual understanding.Communication about the future involves indicating plans to adopt and improve, which, for shareholders -the institutions and the private savers among our clients -provides reassurance that companies are being run for the long-term and in the interests of the shareholders (Edkins, 2012, p.18).
"Comply or Explain" means more flexibility in the application of the set of rules with no free passes for avoiding these rules.Companies are required to provide an explanation, and others, such as future investors and institutional investors, will judge and monitor the actions of the company.Although there is no action from a regulatory authority if the explanation is insufficient, the market forces the shareholders to act.The share price will force the shareholder to engage.Investing is about taking risks.An investor who buys stock in a company with high standards of corporate governance is less likely to lose money.Investment advisers will also take the statement of a code into account when giving advice.
The market, in general, and the shareholders, specifically, force the companies to follow the code (Keay, 2013).Simply, the process for shareholders is that if no one wants to buy the company's shares, then the price will decrease, which prompts the shareholders to try to correct the situation.
Consequently, the decline in the share price encourages the firm to adopt good corporate principles.The process is similar to the idea of market power on competitive policy that drives firms to improve their prices and services.(Motta, 2009, p.41).Shareholders will consider this noncompliance when deciding to buy, vote, hold, and sell their shares (Seidl, Sanderson, Robert, 2009).The aim of the "Comply or Explain" principle is to give companies flexibility in adopting governance practices that best suit their specific circumstances, while also ensuring transparency and accountability to shareholders and stakeholders.Institutional investors, such as pension funds, mutual funds, and other large financial institutions, are attracted to this principle for several reasons: 1.The "Comply or Explain" principle allows companies to adapt governance practices to their specific needs and circumstances.This flexibility is considered important as it recognizes that a one-size-fits-all approach may not be suitable for every company; 2. The requirement for companies to provide explanations for noncompliance promotes transparency.Investors value clear and detailed explanations as they provide insights into the company's decision-making process and help assess the company's governance practices; 3. The principle enhances accountability by making companies justify their deviations from recommended governance practices.This accountability is crucial for maintaining investor confidence and ensuring that companies are actively considering and addressing governance issues; 4. The "Comply or Explain" approach encourages dialogue and engagement between companies and their investors.Investors may engage with companies to better understand the reasons behind non-compliance and to express their views on governance matters.
Institutional investors often use compliance or non-compliance with governance recommendations as one of the factors in their risk assessment and investment decision-making processes.Companies with strong governance practices may be perceived as lower risk.
In the alternative, the UK Stewardship Code provides that, in the "Comply or Explain" system, institutional investors can act against an insufficient explanation.Among the most important codes relating to corporate governance are the UK Corporate Governance Code 2018 and the UK Stewardship Code 2018, the latter of which is related to institutional investors.Therefore, institutional investors will monitor their investee companies under a "Comply or Explain" regime by, for example, giving a timely written In summary, the "Comply or Explain" principle attracts institutional investors by balancing the need for standardized governance practices with the recognition that companies operate in diverse environments.It promotes transparency, accountability, and engagement, which are all factors that institutional investors value in their investment decisions.

VOLUNTARY MECHANISM IN KUWAIT
In Kuwait, the voluntary mechanism is referred to as "Comply or Explain" and is underpinned by a regulatory framework that requires companies to send an annual report to shareholders that stipulates the extent to which the principles have been adhered to and explanations for any deviations.
Kuwait has an extensive and exhaustive Corporate Governance Code, with eleven principles that underpin these rules and inform judicial decisions made in these matters.These overarching principles are as follows: of 2010, which established the Capital Markets Authority (CMA).However, compliance with these rules has not been successful.The CMA realized that strict enforcement of corporate governance was not in line with the economic values of companies.In response to this challenge, the Authority adopted the "Comply or Explain" approach as a solution to the problem of the rigid implementation of governance rules.At the same time, it abandoned the full and immediate mandatory implementation approach.
Traditional methods for the enforcement of corporate governance principles, such as legislation that merely aims to punish non-compliance, are often unsuitable for the modern corporate context.Therefore, securities laws have established rules and codes to form more suitable frameworks for the administration of corporate governance principles in the contemporary context.
Nevertheless, there is a diversity of enforcement methods for corporate governance that are enforced in different ways, including corporate law, securities laws and delegated legislation in the forms of rules and voluntary and mandatory codes.

VOLUNTARY MECHANISM "PROS" AND "CONS"
The Kuwaiti CG Code 2015 clearly denotes the importance of proper rules being established for corporate governance in the pursuit of justice, competitiveness and transparency in the market.In broad terms, the rules of governance discussed here refer to the myriad of principles, systems and procedures that seek to protect shareholders and their interests.
The Code states that good governance is based on the promotion of three question that needs to be addressed is how to enforce the application of corporate governance principles contained in the code.
Voluntary compliance has established precedent in other nations, such as the UK, which is one of the most developed countries in the field of corporate governance.Whilst having the capabilities to enforce the CG principles by law, the opposition to this idea is clear in the opinion voiced by the FRC that applying the 2012 code by law would be likely to harm national economic growth.This position argues that the stringent application of corporate governance by means of the law has the potential to stunt economic growth and place onerous burdens on companies, in terms of the financial and administrative burdens associated with the application of corporate governance principles.Included in this is the need to employ more staff, allocate funding and even gain access to specialized legal advice on the application of rules and strategies for bearing the resultant costs.These factors have strongly influenced the adoption of the system utilized in Kuwaiti law.
In terms of the rules relating to the "Comply or Explain" principle, all companies must disclose the extent to which they are compliant with the official rules.Should a company fail to abide by any of the rules, they must specify the non-compliance.In addition to providing this information in detail in their governance report, they are required to provide the reasons for their non-compliance.This diverse approach to enforcement, which is partly voluntary and partly mandatory, originates in the legal system of the UK.
The nature of business requires an easily developed and flexible means of enforcement because one size does not fit all.Enforcing corporate governance by law has the potential to cause two problems.First, it can harm the growth of the economy.Smaller businesses do not wish to list on the stock exchange due to the complexities of the corporate governance requirements.
As a result, this harms the growth of the business and the economy.Secondly, problems can occur if the company faces financial and administrative burdens due to applying all corporate governance principles.This can lead to the company needing to employ more staff, spend more money, and gain more legal knowledge about the way to apply these rules and how to bear the cost of complying.In Kuwait, this difference between the institutional investor and the individual investor is not recognized in law, which makes it imperative for the authority to issue a special regulation that obliges these large entities that own the company's shares to take a stand against the board of directors if the justification for non-compliance is insufficient.This was done by the British legislator when he issued a special regulation for the institutional investor.
The idea of the 'comply and explain' principle is based on the use of market forces to force companies to adhere to it.Its mechanism of action It is submitted that incorporating the "Comply or Explain" regime will lead to greater compliance with corporate governance principles, especially if institutional investors play a more active role in board oversight.
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?

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finally, administrative organisation to ensure the proper distribution of powers and responsibilities and the separation of functions.Several possible corporate governance areas have developed over time.These include: − Board composition (leadership); − Board effectiveness; − The role of board committees; Sustainability and climate change; − Proxy access.It is difficult to find fixed rules of governance that are suitable for every situation because governance rules for protecting the nation differ from Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG? Development (OECD) or industry-specific bodies.By establishing benchmarks and norms, institutional investors contribute to the creation of a global standard for responsible corporate governance.Institutional investors as shareholders, have a vested interest in promoting good corporate governance practices, including transparency, accountability, and shareholder rights.They may engage with company management on issues such as executive compensation, board composition, and strategic direction to enhance shareholder value.
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG? explanation if, after careful consideration, they do not accept the company's position.

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Strengthen board composition; − Establish clear roles and responsibilities; − Recruit highly qualified candidates for boards of directors and senior management; Safeguard integrity in financial reporting; − Require sound systems of risk management and internal controls; − Promote ethical standards and responsible conduct; − Ensure timely and high-quality disclosure; − Recognize the legitimate interests of stakeholders; − Encourage enhanced performance; − Stress the importance of social responsibility; − Protect the rights of shareholders.The first regulation of corporate governance was issued in Kuwait in 2013, which states in Chapter 4 that "companies must immediately enforce the rules of governance as binding legal rules".Failure to comply with these rules will expose the company to disciplinary actions in accordance with Law No. 7 Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
behavior, which ensures a commitment to upholding ethical standards and maintaining good professional conduct; 2. Oversight and accountability, ensuring that each person involved in the company acts in accordance with properly established procedures and standards and is held to account for their actions and finally; 3. Administrative organization to ensure the proper distribution of powers and responsibilities, as well as the separation of functions.The next Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG? 3.3 VOLUNTARY MECHANISM AND INSTITUTIONAL INVESTORS Institutional investors play a role that differs from the individual investor in the application of corporate governance principles.In Britain, the role of the institutional investor in the implementation mechanism is done through the Stewardship Code, which requires the institutional investor to take a stand if the explanation issued by the companies is not sufficient or to mention the reason for not taking any position due to his conviction with the interpretation issued by the companies.It should be noted that in the past few years, institutional investors have replaced banks in intermediation operations and have become an effective part of securities trading operations.Both the UK Corporate Governance Code 2010 and the UK Stewardship Code are published by the Financial Reporting Council (FRC).The first corporate governance code was published in 1992 (the Cadbury Code) and changes have been made to the Code since that time.The idea of "Comply or Explain" by which a company must comply with the code or explain why it has not, still exists because it has flexibility (no one size fits all).It works alongside the company law and listing rules to ensure that the UK ranks among the highest corporate governance standards in the world.After the Cadbury Code, there were several instruments, such as the Combined Code (1998) based on the "Comply or Explain" idea.At that stage the code was purely voluntary, however, today it is not.This was revised in 2003, updated in 2008 and reviewed in 2009.More amendments were made to the Combined Code and it was renamed the UK Corporate Governance Code in 2010.The most recent renewal and modification of this code was in 2020.
Alhajri, T., M., Al-Shebli, A. (2024) Do Institutional Investors Play a Meaningful Role in the Effective Implementation of Corporate Governance on SDG?