Based in New York, the joint venture will be known as Edelman Corporate Governance Advisers. It will work to give clients benchmarks against their peers on areas such as accounting decisions, disclosure policy, ethical standards and board structure.
Public companies have been facing increasing scrutiny as both investors and the media search for the "next Enron". Omnicom Group, for example, has seen its share price plummet after the Wall Street Journal published an article questioning its accounting practices and it now faces a series of class action lawsuits on behalf of investors.
Breeden, chairman of the SEC from 1989 to 1993, said: "There can be no doubt that this is a critical period for companies and their boards. The marketplace is demanding a higher standard of conduct, greater accountability and increased transparency."
The venture will be backed by Edelman's public affairs and crisis management practices.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .