ABSTRACT
As investors, trustees and the stewards of workers’ capital stand at the threshold of the most transformational economic changes in a generation. It is time for such investors to step up as active asset owners that have a long-term perspective rather than a short-term focus. A report from the McKinsey Global Institute said that these unsustainable trends - most notably the growing size and leverage of the financial sector itself - propelled much of the financial deepening that occurred before the financial crisis. Good governance is important not only in terms of managing companies efficiently, but in ensuring that companies pay workers a living wage, respect their right to organize, and pay attention to their health and safety. Shareholders and stakeholders alike must also play watchdog role, as mistakes can cost lives. The Kay Review addressed the importance of long-term investment as a critical first step in good corporate governance, and provided a set of voluntary guidelines for institutional investors.
