The new code of conduct applies to directors of organisations of all sizes in the public, private and not-for-profit sectors, and has been developed to assist directors in making better decisions and to promote high levels of integrity on the part of directors. It represents a voluntary commitment and is not intended to hold back directors or create a new burden of compliance.
What are the 6 Principles?
The code is structured around six principles of director conduct, each of which is supported by a number of specific undertakings, these being:
- 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.
What is the institute of Directors requesting views on?
The institute of Directors is consulting and requesting opinions and views on:
- Whether there are any additional issues that should be addressed in the code
- How awareness of the code can be encouraged among directors and the wider public.
- Whether directors should make a public declaration or disclosure of their adoption of the code.
- Whether there is a role for Government, regulators, or professional bodies in encouraging adoption of the code.
- Whether existing directors would be willing to commit to the principles and undertakings in the code.
The deadline for responding is 16 August 2024.
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