Ethics and why they matter

Abstract

How do effective directors ensure that sound business ethics and long-term risk-controlled value creation are at the heart of the board’s decision-making? Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to ethical decision-making. Organisational values, ethical behavioural standards, and the associated Codes of Conduct, are all set in the boardroom. The board is responsible for having in place a top management team who are trustworthy and possess integrity. The board is responsible for the culture being sound and healthy. To be on top of this, the board itself needs to have a clear common understanding on why such values are important for the risk-controlled future performance, what basic values need to be in place, and how the board must work to follow this up. The chapter’s introduction leads into the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the ethical standards and behavioural practices of the organisation.