Like it or not, your company’s code of conduct ‘talks’ about your company — it tells a story about what the company believes it and cares about. For this reason, a company should pay close attention to the story it is telling through its code.
If you haven’t heard, Mark Hurd was relieved of his executive duties at HP, according to the Wall Street Journal, “in large part because of the conflict between his actions and the code of conduct, which he publicly championed in 2006 following a boardroom scandal.”
Business ethics education is a necessary component of any corporate compliance training initiative and will lead to long-term success for organizations.
Over the past twenty-five years, corporate codes of conduct have undergone quite an evolution. As Jason Lunday explains, the better codes of conduct of today do more than simply regurgitate company policy.
CCI columnist Jason Lunday discusses why a company’s management needs to take a fresh look at using its standards of conduct to manage the business.
by Generational Equity
There have been many important and interrelated trends that have emerged over the past decade, as the American economy has gone from the heights of the tech boom that defined the “Roaring 90s” to the lows of the GM and Chrysler bankruptcy that are sure to define the end of the 00s.
In between these two economic landmarks, we have faced countless examples of fraud, incompetence, and malfeasance from the likes of Enron, WorldCom, Bernie Madoff and a litany of others. In response, the White House, the Department of Justice, and the SEC, among others, are all scrambling to bring corporate boardrooms and economic markets back into something that resembles a controlled equilibrium. As a result, new regulations and laws have come into being while regulations passed long ago, but considered relatively toothless before, are now being enforced with far more vigor and focus; one example is the FCPA.
The consequence of all of this is that the importance of corporate compliance has never been greater. There is an unavoidable onus on business executives to develop fundamentally sound compliance programs. In addition, for executives of companies with operations in multiple geographic locations, it is imperative that they also develop fundamentally sound strategies for compliance communication.
However, for many middle market companies that are just trying to keep their heads above water during the recession, funding such compliance initiatives can prove difficult. How, then, can middle market companies ensure that they cost-efficiently maximizing their spend when it comes to investing in compliance communication? This article outlines a few specific strategies.
Later today, the New York Chapter of the National Investor Relations Institute (NIRI) and the New York Society of Security Analysts (NYSAA) are scheduled to host a joint conference on corporate governance issues and proxy communication.
By Joan Dubinsky, Chief Ethics Officer for the International Monetary Fund
Once you have tackled the questions posed in Code Redux Part One, proceed to Part Two. Here, you will find a set of recommended steps—from vision to publication. This article details a suggested process you can use to revise your Code of Conduct. Following these steps will result in a Code of Conduct that is better than good, and often quite great.
