What is The ACT Standard and how does it work?
The ACT Framework
Culture has become a key lens through which regulators, shareholders and clients assess firms, as a governance and risk consideration.
The ACT Standard of Corporate Culture is a practical tool developed specifically for and with the investment industry that enables professional investors to assess culture in a standardised and comparable way.
Investment companies use the ACT Framework questions for a structured approach to disclosure that helps professional investors to meet governance expectations more confidently and improves decision-making around risk, reputation and long-term outcomes.
Scrutinising how an asset manager behaves, motivates its people and delivers on its promises, supports deeper insight into their risk management, resilience, and integrity.
ACT - The story so far…
Good work
Building strong, open and flexible cultures allows diversity of thought and representation that will enable better investment analysis, better investment decisions and improve client outcomes. Good investment practice needs the right environment to make good decisions, from initial horizon scanning, innovation, analysis, risk assessment, confidence and judgement.
Good leadership
Environments that are closed to new ideas, perspectives and contributions are not best placed to meet emerging challenges and opportunities; environments that lack the best leadership and the best support risk failing to deliver their best work for clients.
Good people
People that understand the company values and how the company values them can focus on doing a good job, are more likely to be loyal, work better in teams and be advocates for the company externally and internally. This helps to create a positive reinforcement cycle that strengthens the business.
So why ask about diversity, equity & inclusion?
Diversity is one element of successful culture and is an outcome of enabling an environment where there is space for everyone and for the business to thrive.
Equity ensures everyone gets what they need to do thrive - which are not necessarily the same things.
Inclusion encompasses how people feel about the culture and how they see their participation.
