IoD consults on Director ‘Code of Conduct’
The IoD is seeking to promote director integrity by consulting on a new voluntary Code of Conduct.
The Institute of Directors has published a consultation paper on a new voluntary Code of Conduct. This aims to assist directors of entities of all sizes with their decision-making and to promote high levels of integrity.
This Code of Conduct is a practical tool to help directors make better decisions. It also provides organisational leaders with a behavioural framework that can help them build and maintain the trust of the wider public in their business activities.
The Code represents a voluntary commitment and is not intended to hold back directors or create a new burden of compliance. It is structured around six key ‘Principles of Director Conduct’:
- 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.
Each Principle is underpinned by a number of 'Undertakings', with a note in each section also commenting on the desired 'Outcomes' that will be achieved.
The IoD is seeking views on the draft Code from the business community and from the general public, including whether directors should make a public declaration or disclosure of their adoption of the Code. The deadline for responding is 16 August 2024.
See the Consultation paper: Code of Conduct for Directors and press release. For more information about how a Code of Conduct is expected to work, see also these IoD FAQs.
Published 6 June, 2024