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 

Publication type: 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

Publication type: 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

Webinar

The ethics of corporate advocacy recording

Catch up with our latest webinar with David Grayson and panel.

19 May 2023

Blog

Measuring Ethical Culture: what are the metrics we should all be tracking?

As we launch our new Good Practice Guide, Rachael Saunders, Deputy Director, considers the metrics we should all be tracking.

23 January 2023

IBE news

UK business risks falling behind on ethical practice

23 January 2023

Webinar

Measuring Ethical Culture recording

View our webinar recording.

17 May 2022

IBE news

IBE calls for asset managers to underpin ESG investing with culture assessment

21 March 2022

Webinar

Ethics - the missing 'E' in ESG investing? recording

View our webinar recording.

17 March 2022

IBE news

IBE challenges business to reappraise the way it promotes business ethics

The IBE has published a discussion paper, Organising for Ethics, which poses a series of questions and challenges for people involved in ethics functions at all levels, including the board. 

22 September 2021

Webinar

IBE Lecture with Sir Jonathan Thompson

View our webinar recording.

17 September 2021

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