Last month the IoD launched its public Code of Conduct consultation in partnership with BDO.
The code 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.
Unfortunately, in the last few years we have witnessed corporate scandals – including at the Post Office, Carillion and BHS – which have exerted a negative effect on the esteem in which business leadership is held across the UK.
The role of director has never been more vital, complex and challenging. Directors make decisions that are fundamental to the success of their organisations, and which have life-changing consequences for their employees, customers and other stakeholders.
Codes of conduct for directors already exist in certain jurisdictions, including Hong Kong, Singapore and South Africa, where they have been published by national directors’ associations.
We feel there is value for the IoD to implement a similar Code of Conduct across the UK. Our vision is for board members from all types of corporate entity to sign up to the Code of Conduct on a voluntary basis.
By committing themselves to the code, directors will signal their willingness to apply high ethical and behavioural standards in their governance and leadership activities.
It is natural that in the day to day running of our business or trustee positions that we can sometimes forget the strict legal components that apply to ourselves as directors, and it is worth highlighting these.
Under section 172 of the Companies Act 2006, company directors have a legal “duty to promote the success of the company”.
Additionally, the UK Corporate Governance Code (UKCGC) 2018 notes that “All directors must act with integrity, lead by example and promote the desired culture.”
The IoD Northern Ireland team has pulled together a fantastic event which will showcase governance and bring together a community of experts for the first time.
The IoD NI & AIB Governance & Leadership Summit 2024 is a new initiative which seeks to bring senior Northern Ireland business leaders together with thought leaders in the field of ESG, AI and corporate governance.
We are delighted to be joined by keynote speaker Nick Wallis, the award-winning journalist who covered Post Office Horizon scandal.
Nick will share important lessons on how directors can learn from the mistakes of the Post Office, and I do hope to see a range of businesses across Northern Ireland at this unmissable event at Belfast’s Merchant Hotel on October 9, with tickets still available.
We welcome feedback on the Code of Conduct from the business community and the general public and invite the submission of written comments by Friday August 16 via codeofconduct@iod.com.
- John Hansen is chair of IoD Northern Ireland