Institute of Directors introduces code of conduct for business leaders

The Institute of Directors (IoD) has launched a new code of conduct aimed at promoting ethical behavior among business leaders, in a bid to rebuild public trust following several high-profile corporate scandals.

The IoD, also known as the “union of bosses”, has created these guidelines to help restore corporate reputations and introduce ethical practices into the boardroom. The move comes in response to significant corporate failures at the Post Office, Carillion and BHS, which have seriously damaged public perceptions of business leadership.

Jonathan Geldart, Director General of the IoD, commented: “Sometimes business decision makers fall short of what society expects. Those at the top can lose touch with what really matters, which is the need to demonstrate exemplary values ​​and integrity in both their business decisions and their personal behavior. As a result, we have observed corporate scandals in recent years, which have had a negative impact on the appreciation of business leadership.”

The Post Office scandal, involving the Horizon IT system, led to hundreds of sub-postmasters being wrongly convicted of theft and false accounting, marking the largest miscarriage of justice in British legal history. The collapse of Carillion, Britain's biggest industrial failure, was caused by mismanagement and questionable accounting practices, resulting in the loss of 3,000 jobs and delays to more than 450 public sector projects. The demise of BHS, once owned by Sir Philip Green, put thousands of jobs and pensions at risk, with it branded 'the unacceptable face of capitalism' by a parliamentary inquiry.

The IoD Code includes principles such as demonstrating exemplary standards of personal conduct, acting with honesty and integrity, adhering to strong ethical values, communicating openly and honestly, taking personal responsibility for actions and treating people without discrimination or prejudice. The code is currently out for consultation and is intended as a voluntary commitment rather than as an additional layer of compliance.

The code was developed by a committee led by Lord McNicol of West Kilbride, a trade unionist and former general secretary of the Labor Party. McNicol acknowledged that the guidelines in the code were “common sense matters” but emphasized that it could serve as a valuable reference point for directors facing stressful decisions, allowing them to consider: “What would a responsible director do in this situation ?'

By implementing this code of conduct, the IoD aims to promote a culture of ethical behavior and accountability within the business community, help prevent future scandals and regain public confidence in corporate governance.

Related Posts

  • Business
  • June 25, 2024
  • 4 views
  • 4 minutes Read
Elon Musk welcomes third child with Neuralink CEO. Here you can see how many children he has now.

Elon Musk had a third child with an executive at Neuralink, his brain implant company. Musk and Neuralink Corp. director of special projects Shivon Zilis welcomed the baby earlier this…

  • Business
  • June 25, 2024
  • 4 views
  • 3 minutes Read
Paramount+ will increase prices for its streaming plans

Big global is raising the price of its flagship streaming service as the company looks to turn around its business. The company said Monday that it will increase the price…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

Copa America 2024 schedule, live stream: where Argentina vs. Chile can be seen

  • June 25, 2024
Copa America 2024 schedule, live stream: where Argentina vs.  Chile can be seen

Julian Assange, founder of WikiLeaks, pleads guilty to violating the Espionage Act

  • June 25, 2024
Julian Assange, founder of WikiLeaks, pleads guilty to violating the Espionage Act

How to customize your TV screensavers

  • June 25, 2024
How to customize your TV screensavers

Angel Reese leads the way in Sky's rivalry victory over Fever's Caitlin Clark

  • June 25, 2024
Angel Reese leads the way in Sky's rivalry victory over Fever's Caitlin Clark

A Maryland couple 'walked for hours' before dying in the heat of the Hajj

  • June 25, 2024
A Maryland couple 'walked for hours' before dying in the heat of the Hajj

A Hidden Treasure in the Milky Way — Astronomers discover ultra-bright X-ray source

  • June 25, 2024
A Hidden Treasure in the Milky Way — Astronomers discover ultra-bright X-ray source

India's Zyod is raising $18 million to expand its tech-enabled fashion manufacturing to more countries

  • June 25, 2024
India's Zyod is raising $18 million to expand its tech-enabled fashion manufacturing to more countries

Elon Musk welcomes third child with Neuralink CEO. Here you can see how many children he has now.

  • June 25, 2024
Elon Musk welcomes third child with Neuralink CEO.  Here you can see how many children he has now.

WikiLeaks founder Julian Assange makes plea deal with US: NPR

  • June 25, 2024
WikiLeaks founder Julian Assange makes plea deal with US: NPR

Lake Compounce in Connecticut is America's oldest theme park

  • June 25, 2024
Lake Compounce in Connecticut is America's oldest theme park

The special counsel is reluctant to limit Trump's attacks on FBI agents

  • June 25, 2024
The special counsel is reluctant to limit Trump's attacks on FBI agents