Leading Boards N°1 Basics on Boards of Directors | Page 11
To ensure effective everyday governance, the Board must define its expectations of its directors and the rules to follow.
These rules are gathered in a Code of conduct and ethics and should promote the integrity of directors, prevent errors and ensure its implementation. This Code also helps to guide directors in performing their role for good governance.
Companies whatever the size or the purpose will often be confronted with ethical or legal problems that involves values, obligations and responsibilities. The rules specified in a Code of conduct and ethics establish the company’ s values, principles and practices. It guides all Board members by requiring the separation personal needs from those of the company and prevents misconduct.
Other topics may be included such as confidentiality, honesty and fairness to stakeholders( customers, suppliers, shareholders …) but also the respect of various legal standards and technologies such as a board portal.
Finally, the code provides control mechanisms of its rules such as the creation of a committee to oversee the implementation of the rules of the Code.
Establishing a Code of conduct isn’ t just a bunch of rules to discourage directors from ambiguities that they might encounter in exercising their responsibilities. The Code should contribute to create value to the company and its governance.
Boards of Directors Code of conduct
To ensure effective everyday governance, the Board must define its expectations of its directors and the rules to follow.
These rules are gathered in a Code of conduct and ethics and should promote the integrity of directors, prevent errors and ensure its implementation. This Code also helps to guide directors in performing their role for good governance.
Companies whatever the size or the purpose will often be confronted with ethical or legal problems that involves values, obligations and responsibilities. The rules specified in a Code of conduct and ethics establish the company’ s values, principles and practices. It guides all Board members by requiring the separation personal needs from those of the company and prevents misconduct.
Other topics may be included such as confidentiality, honesty and fairness to stakeholders( customers, suppliers, shareholders …) but also the respect of various legal standards and technologies such as a board portal.
Finally, the code provides control mechanisms of its rules such as the creation of a committee to oversee the implementation of the rules of the Code.
Establishing a Code of conduct isn’ t just a bunch of rules to discourage directors from ambiguities that they might encounter in exercising their responsibilities. The Code should contribute to create value to the company and its governance.