Journal of Business Ethics

, Volume 15, Issue 2, pp 167–182 | Cite as

Ethics and corporate governance: The issues raised by the Cadbury report in the United Kingdom

  • Colin Boyd


In the late 1980s there was a series of sensational business scandals in the United Kingdom. There was particular public outrage at the plundering of pension funds by Robert Maxwell, at the failure of auditors to expose the impending bankruptcy of the Bank of Credit and Commerce International, and at the apparently undeserved high pay raises received by senior business executives. The City of London responded by creating a special committee to examine the financial aspects of corporate governance. This paper describes the resulting Code of Best Practice produced by the Cadbury Committee. To reduce the power of executive directors in the boardroom the Code recommends a greater role for non-executive directors, changes in board operations, and a more active role for auditors. The paper reviews the various published reactions to the Cadbury Report, and concludes that the Code is unlikely to halt the incidence of business scandals in the United Kingdom.


Corporate Governance Active Role Executive Director Great Role Pension Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Colin Boyd
    • 1
  1. 1.College of CommerceUniversity of SaskatchewanSaskatoonCanada

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