The Institute of Directors has released a consultation document on a proposed Code of Conduct for Directors.
The Code aims to serve as a practical tool to aid directors in making improved decisions. It also offers organisational leaders a behavioural framework designed to build and sustain public trust in their business operations. The document was drafted for the IoD by a Commission led by Lord McNicol of West Kilbride, and its publication was supported by BDO.
The Code is a voluntary commitment, aimed at guiding directors without adding new compliance burdens. It is built around six core ‘Principles of Director Conduct’:
a. Leading by Example: Exhibiting exemplary standards in personal conduct and decision-making.
b. Integrity: Acting with honesty, adhering to strong ethical values, and consistently doing the right thing.
c. Transparency: Engaging in open, honest, and clear communication, actions, and decision-making.
d. Accountability: Accepting personal responsibility for actions and their outcomes.
e. Fairness: Treating individuals equitably, without discrimination or bias.
f. Responsible Business: Incorporating ethical and sustainable practices into business decisions, considering their societal and environmental impacts.
The IoD is inviting views on the Code of Conduct from the business community and the general public. The consultation closes on Friday 16 August 2024.
Author
Gill Laing is a qualified Legal Researcher & Analyst with niche specialisms in Law, Tax, Human Resources, Immigration & Employment Law.
Gill is a Multiple Business Owner and the Managing Director of Prof Services - a Marketing Agency for the Professional Services Sector.
