The Confederation of British Industry (CBI) has launched a series of proposals aimed at restoring business confidence following recent corporate scandals.

The employers' organisation said the proposals were aimed at allowing UK companies to show they are reliable and thereby restoring investor confidence.

The CBI's director general Digby Jones said lessons had been learned in the UK from the scandals, and that he believed the British system was superior to that in the US.

Proposals include an annual performance review for all company board members and the introduction of international accounting standards in one move, rather than gradually.

Restoring confidence

Sir Nigel Rudd, head of the CBI's boardroom issues group, said recent corporate scandals in America had undermined confidence in UK businesses.

Mr Rudd said: "If confidence is to be won back changes are needed to help firms demonstrate they are accountable".

However, he warned that the process must not damage the company or put it at a commercial disadvantage.

"Dishonesty exists in all walks of life," said Mr Rudd, adding that business was no different.

But he cautioned:" Heavy-handed legislation would be going too far. What is needed is a measured response".

New standards

Among the CBI proposals are plans for audit committees to be made up only of independent non-executives.

It also wants partners involved in auditing a company to rotate at set intervals and called for a "big bang" approach to adopting the international accounting standards by 2005.

The CBI also wants the US to adopt these standards.