Code of Conduct for Directors by 2025
When Prime Ministers and politicians are falling over their own code of conduct. It seems that proposals for A voluntary code of conduct maybe implemented for Directors. A Proposal by the Institute of Directors proposes “an alternative, more flexible approach which emphasises individual responsibility”. The code would be business led rather than a regulatory body or Government but for how long? We see an ever increasing regulatory restrictions within employment, taxes and governance. Is it a step in the right Direction? or should it just be common sense?
The Institute of Directors (IOD) sight the recent corporate scandals at Carillion and P&O ferries and state that 78% of respondents agreed that Directors should be subject to a code of conduct. The code will cover areas like conflicts of interest, corporate opportunities, confidentiality, fair dealing and encouraging the reporting of any illegal or unethical behaviour.
It is more than likely that the people that are signatories of the code of conduct could be viewed on a publicly viewable register and a code of conduct mark placed on the company’s annual report. The draft code would cover the following:
- Responsible Business
- Inclusion and Diversity
- CPD – Continued Professional Development
- Personal Conduct
The code of conduct could be implemented by 2025-26.