The Institute of Directors, supported by BDO, have published a consultation for their upcoming Code of Conduct for Directors, a practical framework of values that stands as a helpful tool for NEDS to make better decisions in the boardroom.
“Written by directors for directors, it offers a roadmap that can help individual directors make the right decisions for themselves and their organisations, often in the face of complex challenges and trade-offs.”
The Code will provide organisational leaders with a behavioural framework that can help them build and maintain the trust of the wider public in their business activities. Rather than creating a new burden of compliance, it is intended as a principles-based voluntary commitment for helping directors.
It is structured around six key principles:
- Leading by Example - demonstrating exemplary standards of behaviour in personal conduct and decision-making.
- Integrity - acting with honesty, adhering to strong ethical values, and doing the right thing.
- Transparency - communicating, acting and making decisions openly, honestly and clearly.
- Accountability - taking personal responsibility for actions and their consequences.
- Fairness - treating people equitably, without discrimination or bias.
- Responsible Business - integrating ethical and sustainable practices into business decisions, taking into account societal and environmental impacts.
NEDs are invited to submit their views on the Code of Conduct by Friday 16th August 2024.
Whilst any feedback is welcomed, they are particularly interested in the following:
- Are there any additional issues that should be addressed in the Code?
- How can awareness of the Code be encouraged amongst directors and the wider public?
- Should directors make a public declaration or disclosure of their adoption of the Code?
- Is there a role for government, regulators or professional bodies in encouraging adoption of the Code?
- If you are currently serving as a director, would you be willing to commit yourself to the principles and undertakings of this Code?
As aptly outlined by the consultation: ‘Most of the undertakings contained within the Code are matters of common sense. However, at crucial moments, when key decisions have to be made, the Code may serve as a useful tool that directors can refer to when asking themselves the question: what would a responsible director do in this situation?’
At a time when the role of the director has never been more vital, complex and challenging, it is critical for NEDs to reflect exemplary values and integrity in their decisions and behaviours. The consultation not only allows NEDs to voice their opinion on the best practice for doing so, but also provides a compelling insight into the upcoming publication.
Learn More
To learn more about the Code of Conduct for Directors, and provide feedback on the consultation, follow the link here.
About BDO
BDO provides accounting, tax, and advisory services to companies across all sectors of the economy. The firm has a proactive, flexible approach to helping businesses overcome the challenges they face, providing innovative and entrepreneurial services in 164 countries.
About IoD
The IoD is a thriving member community for directors in the UK and beyond. They offer professional development, valuable connections and meaningful influence.