Launch of the new Institute of Directors code

On 23 October the Institute of Directors (IoD) introduced a new Code of Conduct for Directors. The Code is intended to apply to those in the private, public and not-for-profit sectors.

It seeks to provide a practical, voluntary framework designed to help directors make better decisions, foster ethical leadership, and rebuild public trust; supporting directors in managing complex decisions while upholding high ethical standards.  Rather than being a regulatory measure, the Code serves as a guide to help directors maintain integrity, transparency, and accountability.

The Code is organised around six core principles:

• Leading by Example – Directors are encouraged to demonstrate exemplary behaviour in their actions and decisions.
• Integrity – Emphasis on honesty and ethical behaviour in all professional matters.
• Transparency – Promotes open and clear communication and decision-making.
• Accountability – Urges directors to take personal responsibility for the consequences of their actions.
• Fairness – Calls for equitable treatment of all individuals, free from discrimination.
• Responsible Business – Advocates for ethical, sustainable decision-making with regard to societal and environmental impacts.

The Code was developed with input from a following a public consultation. Jonathan Geldart, IoD Director General, emphasised that the Code aims to guide leaders in aligning their conduct with societal expectations.    Similarly, Dr. Roger Barker, IoD Director of Policy, highlighted that while adherence to the Code is voluntary, it provides a valuable framework that directors and organisations may choose to publicly endorse as a commitment to ethical standards.

Many directors (trustees) of charitable companies already work to a higher standard than their commercial counterparts, in terms of adherence to principles akin to those described above.  But the new Code may nonetheless provide a useful benchmarking tool, for example for those charities reviewing their board and its performance.