The move follows widespread anger over the collapse of BHS with the loss of 11,000 jobs and a big pension deficit. The government said the proposed changes would better protect privately owned companies' employees, customers and pension funds from mismanagement. It is one of a number of measures being considered by the government in its consultation on corporate governance, due to be announced later on Tuesday. "We have seen an irresponsible minority of privately-held companies acting carelessly - leaving employees, customers and pension fund beneficiaries to suffer when things go wrong," said Prime Minister Theresa May. Image copyright PA Image caption Proposals would see private firms report on diversity and greenhouse gas emissions Proposals due to be announced by business secretary Greg Clark include a bespoke code of practice for the largest private companies who would have to comply or explain why they had not in their annual report. Private firms will also be expected to report on diversity, greenhouse gas emissions and social and community issues. The proposals will form part of the government's green consultation paper on corporate governance, due to be published on Tuesday, which aims to increase public trust in business in the face of the rise in anti-globalisation and anti-business sentiment. Its proposals will include: Forcing companies to publish pay ratios that show the difference in earnings between the chief executive and an average employee Improving the effectiveness of remuneration committees and the extent to which they must consult shareholders and the wider company on pay Measures to ensure the "voice" of employees and customers is better represented on company boards Image copyright AFP/Getty Image caption Theresa May appears to have rowed back from plans to force companies to appoint employees to their boards The publication of the consultation comes after Theresa May appeared to row back from plans to force companies to appoint employees to their boards, an idea that had caused unease among companies. She ruled out forcing firms to appoint employees to company boards when she gave a talk to the CBI last week, saying there were "other routes" to providing worker representation on boards, including advisory councils or panels. TUC general secretary Frances O'Grady said the prime minister should have the confidence to take on "big business elites" over the issue. "Workers on boards is a policy that's tried, tested and proven in many other countries.
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