Hector Sants' good idea

Here's an interesting idea from Hector Sants, the FSA chief executive who was leaving until he wasn't: change the Companies Act to give directors an explicit obligation to contribute to the common good. Too woolly? Well, so is the current wording of the Companies Act, which merely requires directors to promote the success of a company. That, as Sants said, has led to the narrow interpretation that the job of directors is to promote shareholder value, albeit while having regard to the impact on the community. Instilling in law a wider sense of duty on the part of directors seems like a step in the right direction. It may not, in itself, ensure the success of Sants' ethical and cultural crusade. But it might let everybody see clearly that "shareholder value" is a piece of management jargon.