Are we living up to our values?

This is a critical question when it comes to monitoring and assuring an ethics programme.

Members of boards and other governing bodies need to assure themselves that their organisation is living up to its ethical values and commitments and delivering the behaviours and culture expected. In today's world, shareholders and stakeholders have high expectations of those running organisations. They expect companies and organisations to be run to high ethical standards. If not, they expect them to be held accountable.

Assessing the risk still poses some big challenges in terms of information flow, analysis and reporting.

It is important for organisations to work out the indicators that matter to them, inform themselves and use these as the basis for narrative reporting about culture.

Some organisations appoint an oversight committee (a dedicated existing director level committee such as the Audit, Risk or Ethics Committee) to:

  • Consider the criteria for assessing ethical performance against the evidence that is possible and relevant.
  • Consider who will provide the assurance – management, the audit function or external providers. 
  • Provide the board with regular reports on ethical performance, ethical issues, breaches of the code and use of speak up lines.
  • Consider what form of external accountability and reporting is required.

 

Useful resources

Culture Indicators: understanding corporate behaviour
Culture Indicators: understanding corporate behaviour

This Board Briefing sets out to help boards through its examination of a range of relevant indicators and how to interpret them.

Ethics: a risky business?
Ethics: a risky business?

Read the blog by Prof. Chris Cowton, IBE’s Associate Director (Research).

Perspective matters - putting a values-based business model at the heart of reporting and governance
Perspective matters - putting a values-based business model at the heart of reporting and governance

Read the blog by Mark Chambers, IBE's Associate Director (Governance).

Culture by Committee: the pros and cons
Culture by Committee: the pros and cons

The idea of having a committee dedicated to the task of overseeing culture and ethics is relatively new. This survey report is intended to benchmark what is happening in the UK, providing a valuable insight into how companies are approaching the task.

Red Flags: a report on identifying indicators of corporate culture
Red Flags: a report on identifying indicators of corporate culture

This report represents the conclusions of a workshop of senior regulators, company directors and executives and investors exploring ways of identifying early warning signs of a weak culture.

Checking Culture: a new role for internal audit
Checking Culture: a new role for internal audit

Checking Culture: a new role for internal audit shines a spotlight on the role of internal audit in advising boards on whether a company is living up to its ethical values.