The IoD’s proposed Code of Conduct for directors – have your say

The IoD is introducing a Code of Conduct, which while voluntary, is aimed at helping directors make responsible decisions when faced with difficult situations. One desired outcome is to rebuild trust in UK business. The Institute is seeking feedback on the Code through a consultation ending in August.

I attended the IoD’s AGM and it was positive to hear what a transformative year it’s been for the Institute. Many thanks to Patrick Macdonald who stood down as Chair for all his hard work over the last three years and congratulations to John Browett who has taken up the role as of today.

It was particularly pleasing to look ahead to some of the initiatives in development, including a peer-to-peer mentoring scheme and a new Code of Conduct (opens as a pdf) aligned with the Royal Charter, currently in consultation.

The motto of IoD is integrity and enterprise and this piece of work on the Code is all about building trust in business and boards – much needed following highly publicised corporate failures such as the Post Office Horizon scandal and more.

Dr Roger Barker, IoD Director of Policy and Corporate Governance, said:

“We may be the spokespeople for boards, but we believe boards and the government can do better.

“The Code of Conduct may seem obvious but directors often find themselves in complex situations and it can be useful to have a reference point and yardstick to come back to.  The Code is meant to be a practical tool to help directors make better decisions.”

Developed by a group led by Lord Iain McNicol, the Code uses the Nolan Principles as a starting point, which have been adapted to make them more applicable to directors across the private, public and third sectors.

In this instance there are six principles and each come with their own undertakings that directors commit to fulfilling:

1)        Leading by example – demonstrating exemplary standards of behaviour in personal conduct and decision-making

2)        Integrity – acting with honesty, adhering to strong ethical values, and doing the right thing

3)        Transparency – communicating, acting and making decisions openly, honestly and clearly

4)        Accountability – taking personal responsibility for actions and their consequences

5)        Fairness – treating people equitably, with no discrimination or bias

6)        Responsible business – integrating ethical and sustainable practices into business decision-making, taking into account societal and environmental impacts

The IoD is keen to know whether the Code of Conduct is right; whether there are additional issues that should be addressed; how awareness of the Code can be encouraged; how we want government to promote implementation and uptake of the Code and more.

If you’d like to respond to the consultation, you can do this by emailing codeofconduct@iod.com by Friday 16th August. Written submissions can also be made here. Please do join the discussion.