| Link(s): | IoD launches Code of Conduct to help directors make better decisions | Io IoD Code of Conduct for Directors | Institute of Directors IoD Code of Conduct for Directors |
Context
Built upon six key themes which align closely with the FCA’s Conduct Rules and the principles of the SM&CR, the IoD has announced the launch of a new Code of Conduct for Directors, which the IoD describes as 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 development of the Code was subject to an extensive public consultation exercise, with the Code receiving strong endorsement from the overwhelming majority of respondents.
Key points to note and next actions
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.