Cadbury Report on Corporate Governance

The Cadbury Report on Corporate Governance emerged from the efforts of the Cadbury Committee, established by the London Stock Exchange. Chaired by Sir Adrian Cadbury, the committee aimed to address growing concerns regarding financial reporting and accountability in companies. The report introduced a code of best practices that emphasized the importance of a balanced board structure, the separation of the roles of the chairman and the CEO, and the necessity for independent non-executive directors. This framework was designed to enhance transparency and restore investor confidence in the wake of several high-profile corporate scandals. The recommendations outlined in the report became foundational for corporate governance reforms not only in the UK but also influenced practices globally, leading to the establishment of similar codes in various countries.