UK Firms Slow To Grasp Implications Of Corporate Governance Laws, Survey Reveals

by Robin Pilgrim, LawAndTax-News.com, London

25 July 2003

According to a survey of UK IT directors conducted by IT Week and Financial Director, in conjunction with Unisys, firms in the United Kingdom have been slow to grasp the need for improved corporate governance procedures in the wake of the Enron and WorldCom collapses, and the enactment of the Sarbanes-Oxley Act in the United States.

21% of those questioned revealed that they had witnessed no increase in focus on corporate governance, and just under half (46%) reported only a moderate increase.

Around 70% of the 200 IT directors believed that a lack of time and resources were the principal reason behind their firms' failure to adapt, while nearly half of respondents cited the additional administrative strain created by such an effort, and internal cultural resistance as key factors.

The IT Week/Financial Director survey observed, with regard to these results, that:

'Concerns about resource allocation are understandable in light of the consensus that IT will need to be more greatly involved and will be key as a supplier of management information.'

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