Reflections on four years at the IBE by Dr Ian Peters

Tags: Corporate governance

In 2026 the IBE will celebrate its 40^th anniversary. So, my four years and four months as the IBE’s Director is but a short time in the IBE’s history. The IBE was set up in 1986 as a response to the deregulation of the City of London (Big Bang). At the time only one in six leading companies had a written code of ethics. Today, according to the latest IBE research, 90 percent of FTSE 100 companies have such a code. Yet, as we know, having a code of ethics is necessary but not sufficient to deliver an ethical business culture.

Much has happened in the last four years or so. I joined the IBE just as Covid hit. Like all businesses we had to come up with new ways of working, moving most of our delivery, including meetings and events, online, and switching to remote working. Many of those changes have now become permanent ways of working and have led to efficiencies and better delivery for our Supporters. But, of course, they create new challenges, not least maintaining team spirit and the right culture.

For business, Covid was quickly followed by Russia’s invasion of Ukraine, the energy and cost of living crisis and conflict in the Middle East. And all against a backdrop of geopolitical uncertainty, the ongoing threat from climate change, and the ethical challenges of AI. It is perhaps not surprising therefore that there has been recognition of the need to focus on purpose in organisations and the importance of the values that underpin the delivery of purpose. I have observed more and more companies reviewing their purpose and values and investing in developing an ethical culture in their organisations. This gives me great confidence for the future.

But not everyone agrees with this way of doing business, with some criticising companies for adopting a ‘woke’ approach and taking their eye off the ball of competitiveness. Despite evidence to show that ethical companies are better able to attract the best talent, secure investment, and appeal to customers, there are still well-known detractors in business and politics who argue that companies are spending too much effort on purpose statements, and policies promoting diversity, equity and inclusion.

So, for those of us who recognise that ethical business is the best way to do business, what more is to be done? As I noted above, just producing a code of ethics is not sufficient. Two other key ingredients are needed: leadership and strategy.

Nobody disputes that leadership is critical to success in business but equally, it is key to delivering ethical business. Leadership provides the cues to behaviour at all levels of the business and will either lead the development of an ethical culture or inhibit it. That is why, when we at the IBE work with businesses on their ethics programmes, we like to work with the leadership as well as the practitioners. It is vital to create the right foundations, with the visible commitment of leadership. And it is why we published our Guidance for Board members on developing an ethical business culture last year as a checklist for leaders. It is also why we have established our Future Leaders Ethics Network, recognising that we need not only to engage with today’s leaders but also with the leaders of tomorrow.

Of course, to achieve success, business leaders also need to set out a clear strategy. So, it is surprising how often I hear that organisations do not have a clear ethics strategy as part of their business strategy. This is one of the key things we need to address if we are to maintain the momentum of more ethical business. Boards and executive leadership must give more bandwidth to consideration of their ethics strategy and invest the appropriate resources in its delivery. Only if they do this will it be possible to measure the degree of success in achieving an ethical culture. As with any other aspect of business performance, it is essential to agree the metrics which will be used to measure the success of the ethics strategy, and for leaders to receive regular reports on progress.

Overall, I feel very positive about the future of ethics in business. But, as within individual companies, it is important that we keep our eye on the ball and keep close to you, our customers.

It has been a privilege to lead the IBE over the last four years and I’d like to thank my colleagues and all the dedicated professionals I have worked with and wish my successor, Lauren Branston, every success in taking the Institute forward and continuing to support the ethical journeys of our Supporters and the wider community.

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