Code of Conduct for Directors by 2025
19/07/2022
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:
- Directorship
- Integrity
- Responsible Business
- Inclusion and Diversity
- Shareholders
- Stakeholders
- Confidentiality
- CPD – Continued Professional Development
- Personal Conduct
The code of conduct could be
implemented by 2025-26.
