A board's core purpose is to promote the long-term success of the company in line with its values. Boards that embrace ethical standards explicitly in the way they and the company operate are best placed to achieve the durable benefits that come from doing business ethically. 

The board is the forum for reviewing holistically the organisation's stakeholder relationships. In reality, it is the only forum, as it directs the company's purpose, business model and strategy.

IBE Guidance

A summary of good practice

• It is imperative that the board review is based on the organisation's values. These are the foundation as to how business is done whatever the situation.
• Values are not just about ensuring good behaviour by employees. They are also important support in decision-making. Boards frequently have to make difficult decisions and address problems for which there is no absolutely right answer, for example in considering executive remuneration, or the use of artificial intelligence. A clearly articulated and consistently applied set of values will help guide boards in their decision-making.
• Directors also need to have a clear set of policies on topics such as managing conflicts of interest; financial reporting; and its dealings with stakeholders, amongst others.
• As the board has responsiblity for the organisation's culture, it is good practice to establish a board level committee with oversight for establishing, reinforcing and monitoring the ethics policy and identifying ethical risks and opportunities.

Further resources