Best Management Practice (BMP) / Best Practice

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Practices, procedures, or routines which are shown to improve financial and nonfinancial outcomes, on average and across a large number of firms. Practices, policies, and procedures that have been shown to lead to better financial and non-financial outcomes. Best measured across a large number of companies over a reasonable timeframe. (ED)

Guidelines or recommendations on corporate governance issued by independent experts that set the standard for the governance structures, strategies, and actions to help companies achieve good governance. Notable codes of best practice include:

The Cadbury Committee (1992)
• The Greenbury Report (1995)
• The Hampel Report (1998)
• The Higgs Report (2003)


ICAEW: The Greenbury Report