Publication

FTSE 100 Codes of Ethics: Room for Improvement

Latest research from the IBE has found that only 81 FTSE 100 companies have a code of ethics that is publicly available. And when assessed by their research team, based on IBE best practice standards, at least half the available codes were found wanting.

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Whilst a good code of ethics does not guarantee good corporate behaviour it does provide a strong indicator of the presence of an ethical culture and, the IBE believes, is a key component of an effective ethics framework.

The IBE advocates the following best practice:

Include a clear endorsement of the code by senior leadership
Ensure the code is principles rather than rules-based and clearly linked to the purpose and values of the organisation
Explain clearly how people can speak up if they have any ethical concerns
Set out what people can expect from the speak up process and include a clear commitment to zero tolerance of retaliation
Include effective guidance for employees, such as a decision-making framework, FAQs, and real examples of ethical dilemmas
Review and refresh the code at least every three years

To read the IBE Report in full click on the link above.