ACCA welcomes the opportunity to respond to this consultation on the Code of Conduct for Directors, developed for the IoD by a Commission chaired by Lord McNicol of West Kilbride. While we believe this Code of Conduct could be an effective tool to help directors make better decisions, in this response we provide suggestions for making it more practical. One of the Code’s key strengths is that it also provides organisational leaders with a behavioural framework that can help them build and maintain the trust of the wider public in their business activities.
Boards are the backbone of the UK's economy, and given the chain of corporate governance failures, a large majority of ACCA members on boards would agree that a Code of Conduct could do a lot to restore and maintain trust .But the question will be how can it be implemented and we appreciate that this will be the focus of the Commission's second stage. This stage will be the crucial one in getting directors to improve risk oversight and out words into action. As we face multiple increasingly interconnected, fast-moving existential risks, principled leaders must make practical and effective decisions affecting the livelihoods of consumers, communities and society. Adoption and adherence of the Code of Conduct for directors will be key to positive change for the UK economy.
To read the response in full, please download the consultation response document found on this page.