What Five Actions Can a Board of Directors Do to Create

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The Answer is For Boards to effectively create a culture of ethical behaviour and financial integrity,they must commit to the following specific actions:
1.The Board must clearly define and establish boundaries of acceptable behaviour and financial integrity,and create performance standards to evaluate adherence to these parameters.
2.These boundaries must be clearly understood and communicated to all employees in the form of a policy or code of conduct.
This code of conduct is not limited to financial integrity only,but should clearly identify boundaries associated with ethical behaviour,both internal and external,and the consequences for failure to adhere to such a policy or code of conduct.
A key requirement at this level is that the senior management team of the organization fully buys into the development process and the integration of this code of conduct into the organization's policies,protocols,and overall culture.
3.The Board of Directors must appoint a representative (individual or committee),at the Board level,whose responsibility is to audit managerial and employee performance and action in critical areas of this policy or code of conduct.
This representative or committee would also be a key participant in the reviewing of compensation packages and other personnel-related policies to ensure that these are not designed in a way which would encourage unethical behaviour.
4.The Board of Directors must create and support a mechanism for the reporting of ethical concerns (whistle-blowing)within the organization,with such a process designed in a way which ensures that employees who utilize such a process are not penalized or ostracized.
5.The Board of Directors,and/or its representative,must interact with senior management and external agencies monitoring the organization's activities in order to discuss issues which could arise,with respect to management and/or employees,and represent the best interests of the organization and its shareholders,with respect to questions of ethical behaviour and/or financial integrity.

What Five Actions Can a Board of Directors Do to Create

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What Five Actions Can a Board of Directors Do to Create

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