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 

Webinar

IBE webinar recording: This time no mistakes

#ICYMI - Catch up with the recording of the IBE webinar from 12 December 2024

19 December 2024

Webinar

IBE Webinar recording: How business can do the right thing in a turbulent world

23 September 2024

Blog

Reflections on four years at the IBE by Dr Ian Peters

29 August 2024

Report

Is Organisational Culture the Next Frontier in Investment?

21 August 2024

Blog

Why it’s time for shareholders to focus on the transformative value of investing in culture by Annabel Gillard

18 July 2024

Webinar

IBE webinar recording: Good for profit, people and planet

30 May 2024

Blog

Measuring Ethics: The human factor by Richard Hardyment

11 April 2024

Blog

Explain Yourself: How corporate reporting really can engender trust by Joel Feyerherm

27 March 2024

Survey

IBE Survey - Ethical Risks 2024

19 February 2024

IBE news

Fraud fears rise due to tightening economic conditions

19 February 2024

Blog

What are the ethical risk factors business leaders are most concerned about in 2024?

19 February 2024

IBE news

IBE supports FRC’s guidance for the UK Corporate Governance Code 2024

29 January 2024

IBE news

IBE welcomes the revised UK Corporate Governance Code from the FRC

22 January 2024

Webinar

IBE Webinar recording: Profit with purpose - who cares?

Catch up with the recording of the webinar on 30 November 2023 co-hosted by IBE / Thinks Insight & Strategy

01 December 2023

Blog

Ethics on the board agenda

Read Prof. David Grayson's blog for Board Intelligence.

20 October 2023

Blog

Why ethics should be at the top of the board agenda

04 October 2023

IBE news

Ethics institute calls on boards to put culture at the top of the agenda

02 October 2023

Board briefing

IBE Guidance for Board members on developing an ethical business culture

02 October 2023

Consultation

IBE response to FRC consultation on proposed revision to the UK Corporate Governance Code

Read IBE's response to the FRC consultation.

08 September 2023

Webinar

Webinar recording: Ethical Governance - dilemmas and trade-offs?

Catch up on our webinar Ethical Governance: dilemmas and trade-offs? hosted by EY, IBE and ICAS

07 September 2023

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