Corporate Ethics Policies and Programmes 2016 UK … Ethics Policies and Programmes: 2016 UK and Continental Europe Survey Contents Page Author and Acknowledgements 2 IBE Foreword

SurveySurvey

Corporate Ethics Policies and Programmes 2016 UK and Continental Europe SurveyBy Guendalina Dondé

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Survey

Corporate Ethics Policies and Programmes 2016 UK and Continental Europe Survey

By Guendalina Dondé

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurvey

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Firstpublished26January2017bytheInstituteofBusinessEthics24GreencoatPlaceLondonSW1P1BE

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ContentsPage

Author and Acknowledgements 2

IBE Foreword 3

Introduction 4

Background 4 Who is this survey for? 4 What is an effective ethics programme? 4 IBE business ethics framework 5 The ethics landscape 6

Key Findings 7

Methodology 8

Purpose 8 Analysis 8 Questionnaire 8

Chapter 1 Corporate Culture 10 Core values 10 Board engagement and tone from the top 11 Current ethical issues 13

Chapter 2 Corporate Ethics Programme 15

Overview of key elements 15 Responsibility for the ethics programme 18 Engagement with stakeholders 20

Chapter 3 Building Blocks of the Ethics Programme 22

Code of ethics 22 Communication strategy 26 Ethics training 28 Speak up 32 Risk assessment, monitoring and accountability 34

Summary and Conclusion 38

Appendices 39

1 IBE 9–Step Model 39

2 Survey Questionnaire 40

Related IBE Publications 46

1


Author

Guendalina Dondé isSeniorResearcherattheIBE.ShewritesandresearchesonarangeofbusinessethicstopicsfortheIBE.Sheistheco-authoroftheFrenchandItalianIBESurveyEthics at Work: 2015 Survey of EmployeesandtheIBECoreSeriesCodes of Business Ethics: examples of good practice.BeforejoiningtheIBE,shecollaboratedindevelopingthecodeofethicsfortheItalianAssociationofManagementConsultantsandworkedforaEuropeanCSRBusinessNetworkbasedinBrussels.SheholdsaMaster’sdegreeinBusinessEthicsandCSRfromtheUniversityofTrentoinItaly.

Acknowledgements

Anumberofpeoplehavebeenhelpfulinproducingthissurvey.IamgratefultotheIBEteamfortheirsupportandadvice.Inparticular,CharniGrant,ResearchAssistant;SimonWebley,ResearchDirector;RozlynSpinks,HeadofAdvisoryServices;PhilippaFosterBack,DirectorandMoniaWadham,PublishingEditor,allcontributedpracticalhelpandadviceonthecontentandstyleofthispublication.

IamespeciallythankfultoDanielJohnson,CRDataAnalystatPentlandBrandsLimited,whosecontributionwascrucialtothedevelopmentanddeploymentofthesurveyquestionnaire.HewasassistedbyanadvisorygroupincludingethicsandcompliancepractitionersfromanumberofIBEsubscribercompaniesandmygratitudegoesouttothemall.

IwishtothankDanielJohnsonandAlysonCorriganwhokindlyagreedtoreviewthedraftofthissurvey–bothprovidedhelpfulinsightsandsuggestions.ThecollaborationwithandsupportfromtheSpanishassociationForéticaandtheItalianfoundationSodalitaswerekeyinencouragingtheparticipationofcompaniesfromcontinentalEurope.Iamverygratefultothemandotherswhohavebeensupportive.

2


IBE ForewordEverythreeyearstheIBEsurveyscompaniestofindouthowtheyareembeddingtheirethicalvalues.Thisistheeighthintheseries.

Whilemostofthequestionshaveremainedthesame,newoneshavebeenaddedthisyeartoreflecttheinnovationsthatorganisationsareusingtomaketheirethicsprogrammeseffective.Abroaderrangeofcompanieswereaskedtoparticipateinthisyear’ssurvey.

Themainpurposeofthissurveyistoprovideinsightintohowcompaniesmanagetheirethicsprogrammeinapracticalway.ForthefirsttimeitusestheIBEEthicsFrameworktodothis.

Thesurveycanbeusedasabenchmarkforcompaniestodeterminehowwelltheirpoliciesareworkinginembeddingtheirethicalvalues.

TheIBEwelcomesfeedbackonitssurveys.Inparticular,weappreciatesuggestionsonhowtoextendorimprovethetopicscovered.

Philippa Foster Back CBEDirectorInstituteofBusinessEthics

3

IntroductionBackground ThistriennialsurveyprovidesanoverviewofhowethicsisembeddedwithinlargeorganisationsthatoperateintheUKandContinentalEurope.WhentheIBEconductedthissurveyforthefirsttimein1995,muchemphasiswasplacedonthecodeofethics.Twentyyearson,organisationslookatethicsthroughamoresophisticatedlensandithasbecomeevidentthat,whilstacodeisnecessary,itisnotsufficienttoensurethatcorevaluesareembeddedthroughoutbusinesspractice.

Asaconsequence,thescopeofthissurveyhasbroadenedovertheyears:howcanorganisationsmakesurethatemployeessharetheircorevaluesandfeelempoweredtodotherightthing?Howcanethicsbecomeanintegralpartofthegovernancestructure?Whatistheroleofseniorleaders,andtheboardinparticular,insettingtherighttonefromthetop?Aretheycommittedtoethicalcultureandbehaviour?

Toaddresstheseandsimilarconcerns,thissurveyincludesnewquestionsandmorecomprehensiveresponseoptions.ItpresentstheresultsoftheeighthIBESurveyonCorporate Ethics Policies and Programmes.Wherethequestionshaveremainedunchanged,itisnowpossibletoidentifytrendsovera20yearperiod.

Who is this survey for?Thissurveyhasbeenwrittenforthosewhowishtogainabetterunderstandingofhowanethicsprogrammecanbemanagedeffectively.Peopleacrossdifferentbusinessfunctionscanbenefitfromitsfindings–seniorexecutives,managers,otheremployeesorexternalstakeholderswhoareseekingtogainaninsightintohowcompaniesembedethicswherevertheyoperate.

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyIntroduction

Forcompaniesthatarestartingout,thissurveyprovidesanoverviewofthedifferentelementsofanethicsprogramme.Itenablesorganisationswithmoreestablishedethicsprogrammestoobservehowtheycomparewithtypicalpracticeandgainanideaofwhereitcanbeimprovedandenhanced.

What is an effective ethics programme?Theprocessofbuildinganethicalcultureinbusinessisajourneywhichstartswithanorganisation’sethicalvalues(seeFigure1).Thesecanbeseenasthecompassthatguidesbehaviour.Valuesareusuallyexpressedthroughacodeofethics(orsimilardocument)whichprovidesguidancetoemployeesonhowcorevaluesofthebusinessareappliedinpractice.Ifvaluesarethecompass,acodeisthemapthatguidesemployeesintheirdailydecision-making.

Acomprehensiveethicsprogrammeprovidestheadditionaltoolsthatcompaniesmustdeveloptomakesuretheircorevaluesareeffectivelyembeddedandimplemented.Theseincludeappropriatecommunicationcampaigns;regulartraining;resourcesthatencourageanopenandsupportiveenvironment–includingframeworksformakingdecisionsandspeakingup–andmonitoringprocesses.

Byfollowingthismodel,organisationsareabletohaveanimpactontheiremployees’behaviouranddecision-making,ensuringthattheyareshapedbythecompany’scorevalues.Ultimately,thiswillhelpthemtofulfiltheirpurposeandpromotelong-termbusinesssuccess.

4

Corporate Ethics Policies and Programmes: 2016 UK and Continental Europe SurveyIntroduction

Code of EthicsSupported

by

Embedded intoorganisational culture

through

Ethical ValuesReflected in the purpose, business model, strategy, governance,

ethics policy and decision-making process in the organisation

Improving Financial and Operational Performance

Enhancing Trust and Reputation

Et

hi

cs

P

ro

gr

am

me

Communication & Engagement

Training &Reinforcement

Risk Assessment, Monitoring &

Accountability

✓

Leadership, Supportive

Environment & Speak Up

i

Creating an open, responsible culture, which,

combined with business values, influences behaviour and conduct

Figure 1 IBE Business Ethics Framework

5

The Ethics LandscapeHardlyaweekgoesbywithoutsomereferencetoamajorillegalorunethicallapseinthewayanorganisationdoesbusiness.

Indeed,ifyoureallywanttoengageanaudienceduringasessiononabusinesstopic,citingamediareportonthemostrecentcorporatemalpracticewillalwayshelpyoutogainattention.

Therisktobusinessesbysuchmediaexposureisalwayspresent.Itisimpossibletoinsureagainstitandthereforecomesdowntoself-insurance.Whileweknowthatnineoutoftenemployeeswanttobehaveproperly,therewillalwaysbeatenthwhowillfailtoconform.

Howthendoyouself-insureagainsttheriskoftarnishingyourgoodreputationandlosingthetrustofyourcustomersandsuppliers?Evenmoreseriously,howdoyouassureyourselfthatthebehaviourof‘associatedpersons’–thosewithwhomyouhaveabusinessrelationship–istrustworthy?

Thereisnoquickoreasyanswertothesequestions.Buttherearepracticalpreventivemeasuresthatanyorganisationcantaketominimisetheriskofcorporateirresponsibility.Theserevolvearoundtheadoptionofclearethicalandbusinessvaluesandameanstohelpemployeesatalllevelstoapplythem.Thiswillinvolvetheproductionofguidancetostaffonissuesthatarenotcoveredbylawsandregulations–bywritingandpropagatingacodeofethics.

ThispublicationreviewshowthisisbeingdoneinlargerorganisationsintheUnitedKingdomandothercountriesinContinentalEurope.Itidentifiesthetrendsandtracesthechangesthatareoccurringincontent,methodsofembeddingandmonitoringtheeffectivenessofthiskeytool.

Ensuringthatyourcodeofbusinessethicsisrelevantandisusedatalllevelsofmanagementisonewayofreducingtheriskofmalpracticeandatthesametimeassureemployeesthathowtheydobusinessistakenseriously.

Simon WebleyResearchDirectorInstituteofBusinessEthics

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyIntroduction

6

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyChapter

Survey Key Findings

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyKey Findings

Core values Leadership engagement

arethethree most common value words usedbycompanies

‘‘Integrity’’ Integrity ‘‘Respect’’ Respect

‘‘Excellence’’ Excellence

Themainpurpose of the code ofethicsisto:

ETHICS

Code of ethics

1 Provide guidance to staff

2 Create a shared culture

3 Make a public commitment to ethical standards

However,only41% establisha formalisedapproachtomonitoringit

! Speak up 97%ofcompanieswitha speakupsystemalsohaveapolicy to protect employeeswhospeakupagainstretaliation

Morethanaquarterofcompanies

(26%) do not have a communication strategy on ethics

Communication strategy

✓MonitoringThemetricsthataremore frequentlyusedtomonitoran ethicsprogrammeare:

1 Percentage of employees receiving ethics training

2 Data about speak up

3 Questions on ethical standards in staff surveys/ internal audit reports

Businesspartnersarelikelytobeofferedtraining only when it is considered necessary (56%)

Training

Ethics programmeThethreemost common elements ofanethicsprogrammeare:

1 A code of ethics

2 Ethics training/ speak up mechanism

3 Internal reporting tools

ETHICS

i

ofcompanieshaveasupportive environment forethics93%

86%Values andcultureareregularitemsontheboardagendain ofcompanies

64% seetheirleaders as very or extremely engaged inethics

7

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyMethodology

MethodologyPurpose Thispublicationpresentsthecurrentfindingsofasurveywhichbeganin1995andwaslastconductedin2013.Itcanhelpto:

• Understandcurrentpracticeincorporateethicsprogrammesinaccordance withtheIBEbusinessethicsframework

• Trackdevelopmentsoverthelasttwodecades

• Identifyandsharegoodpracticeinhoworganisationsareapproaching businessethics.

Analysis Thissurveydetailsthefindingsfromtheresponsesof59organisationssurveyedincollaborationwithhomologousorganisationsinSpain(Forética)andItaly (FondazioneSodalitas)inlate2016.

Theanalysisispresentedinthreechapters:

Chapter 1looksbrieflyathowcompaniespromoteastrongethical businessculture.

Chapter 2reviewsgeneralaspectsofcompanies’approachtoethics,includingtheirengagementwithinternalandexternalstakeholders.

Chapter 3 presentsamoredetailedviewofthebuildingblocksofan ethicsprogramme.

QuestionnaireTheIBEEthicsFramework(Figure1)providesthestructureforthissurvey.Questionscoverthefollowingareas:

1.Ethicsprogramme

2.Corevalues

3.Codesofethics(orequivalent)

4.Communicationandawarenesscampaigns

5.Ethicstraining

6.Supportiveenvironment,includingleadershipandspeakup(whistleblowing)

7.Riskassessment,monitoringandaccountability

8.Engagingthirdparties

8

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyMethodology

Respondent profileIn2016,asin2010and2013,wesurveyedcompaniesquotedintheFTSE350andlargercompaniesquotedinFrance,Germany,ItalyandSpain.Inaddition,webroadenedthescopeofthesurveybyincludingotherlargecompanies–eitherlistedonothermarketsornon-listedwithasignificantpresenceinEurope.

Thesurveywasemailedeithertothepersonknowntoberesponsibleforthebusinessethicsfunction,theCEOorthecompanysecretary.Abouthalfofrespondentswereindividuallyresponsiblefortheircompany’sethicsprogramme.Threeinfourhadbeenworkinginethicsandcomplianceforatleastfiveyears.RespondentscompletedthesurveyusingSurveyMonkey.Allpercentageshavebeenroundedsomaynottotal100%.

Thesurveyfindingswerenotformallytestedforstatisticalsignificanceduetothesamplesize.However,theresponserateissufficienttodrawgeneralconclusionsandevaluatetrends.Observationsarebasedonthepercentageofrespondentsansweringquestionsandnotthepercentageoftotalrespondents,sincenotallrespondentsansweredallquestions.

Thesampleofrespondentscomprises59companieswhichwereprimarilylistedinthefollowinglocations:

• UKFTSE350:29

• ContinentalEurope:16 1

• USA(NYSE):2

• Japan(TokyoStockExchange):1

• Notpubliclylisted:11

1 The16companieslistedinContinentalEuropeweredividedasfollows:France(CAC40):8;Spain(IBEX35):4;Germany(DAX40):1;Italy(MIB40):1;Switzerland(SIX):1;Euronextindex:1.

!

i

Whererelevant,trendsandpointsofinterestarehighlightedbythe followingsymbols:

ResultsfromtheanalysisofFTSE350companies

ResultsfromtheanalysisoflistedcompaniesinContinentalEurope

Examplesoftoolsthatrespondentsfeltworkedwell

Examplesoftoolsthatrespondentsfeltwereunsuccessful

Infopoint

✓

9

Corporate CultureCorporate culture sits at the heart of business. It is through the promotion of sound corporate culture that companies are able to link strategy to purpose, thereby protecting and generating value. The need to strengthen a company’s ethical culture is often sparked by a crisis or a high-profile ethical lapse which prompts organisations to reflect on the way they do business. However, it is paramount that companies continuously invest in their culture – even when there isn’t a crisis – to help protect their business from ethical risks and enable long-term success.

Althoughaproperdefinitionofcorporatecultureremainsdifficult,therearetwo key elements: ethical values,asexpressedthroughacodeofethicsandsupportedbyanethicsprogramme,whichshapethecultureofanorganisationandexplain‘howthingsaredonearoundhere’.

Thisneedstobeunderpinnedbyclearleadership commitment:seniorleaders,especiallytheboardofdirectors,haveanimportantresponsibilityinpromotinganethicalculture.Leadingbyexample,theymustensureethicsisintegraltotheirorganisation’sgovernancesystem.

Core valuesCorevaluesarethefoundationofbusinessethics–theyhelpdefineitsscopeandexplainhowtheorganisationwillachieveitspurpose.TheIBEconsidersitgoodpracticetomakethesevaluesexplicit,includingaclearexplanationofwhattheymeanandhowtheyareappliedinaspecificcontext.IBEresearchofFTSE100companiesshowsthatoverthreequartersofcompaniesinthisgrouphavemadetheirvaluesexplicitandpubliclyavailable. 2

Thissurveyreinforcestheideathatcompaniesincreasinglyrecognisetheimportanceofstatingtheircorevalues.Almostallrespondents(96%of46)reportthattheircompany’svaluesareexplicit.

Asvaluesarecloselylinkedtothecultureofaspecificorganisation,thereareavarietyofvaluewordsthatcompanieschooseforthispurpose.Figure2showsthethreemostfrequentlymentionedonesinthissurvey.TheyarecomparedtoIBEresearchfindingsamongFTSE100companies.

Corevaluesadoptedbyorganisationscanbegroupedintotwosets:business values,suchascustomerserviceorentrepreneurialspirit,andethical values,suchasintegrityandrespect.Businessvaluesareimportant,astheyrelatetothecommercialgoalsoftheorganisation.However,itisessentialthattheyareunderpinnedbyethicalvalueswhichsetthestandardofexpectedbehaviourtoachievethosegoals.

The strategy to

achieve a company’s

purpose should

reflect the values

and culture of the

company and should

not be developed

in isolation. Boards

should oversee both.

SirWinfriedBischoff,Chairman, Financial Reporting Council (FRC)

‘‘

Business ethics is

the application of

ethical values to

business behaviour.

Institute of Business Ethics

‘‘

1 Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyChapter1

2 ResearchconductedinJune2016:theIBEcouldidentify77outofthe100companiesintheFTSE100listthathaveasetofcorevaluepubliclyavailableontheirwebsite.

10

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyChapter1

TheresultsshowninFigure2highlighthowcompaniesarticulatetheneedtobalancebusinessandethicalvalues.Integrityandrespectarethemostfrequentlymentionedethicalwordsinbothsamples.However,theseareusedincombinationwithbusinessvaluessuchasexcellenceorinnovation.

Asthesocial,economicandpoliticalenvironmentevolves,manyorganisationsfeeltheneedtorefreshtheircorevaluestokeepthemrelevanttotheiremployeesandotherstakeholders.Overfourinfiverespondents(82%of38)reportthattheirorganisation’scorevalueshavebeenrefreshedatsomepoint.

Figure 2 Most frequently mentioned value words

What does integrity mean for business?

“We act fairly, ethically and openly in all we do.

• Showthecourageto do and say the right thing

• ActinprivateasI do in public, and honour my commitments

• ChallengethingsI believe to be wrong and be open to challenge from others

• Beaccountablefor failure as well as success, and not allocate blame.” 3

i

3 DefinitionofintegrityprovidedbyBarclaysBank(asavailableonthecompanywebsiteinNovember2016).IntegrityisoneofBarclays’corevalues.

4 Percentageofrespondentswhoindicateeither“very engaged”or“extremely engaged”

Culture exists

regardless. If left to

its own devices, it

shapes itself, with

the inherent risk that

behaviours will not

be those desired.

Employees will work

out for themselves

what is valued by

leaders to whom

they report.

SalzReview(2013)AnIndependent Review of Barclays’ Business Practices

‘‘Board engagement and tone from the topAneffectivetonefromthetopiscrucialtoensuringthatcorevaluesareeffectivelyembeddedwithinbusinesspractice.Thoseinleadershippositionshavearesponsibilitytoleadbyexample,demonstratingthecompany’scommitmentthroughtheirbehaviourandpromotinganenvironmentthatreflectstheirorganisation’svaluesandethics.

Overall,respondentsexpressapositiveviewonthis.Almosttwothirdsofrespondents(64%of39)saythatsenior leaders intheirorganisationareveryengagedinethics, 4 while28%reportsomelevelofengagementwithethicsbyseniorleadership(“somewhat engaged”).

Theengagementofseniorleadersismirroredbythefocusonethics,valuesandcultureatboard level,with86%of43respondentsstatingthattheseareregularitemsdiscussedinboardmeetings.AsFigure3illustrates,athirdofrespondentsreportthatthishappensatleastonceayear.

IBEanalysisof38qualitativeresponses Q. What are the values of your company? Base = 38 companies

ResearchconductedbytheIBEinJune2016.77FTSE100companieswereidentifiedashavingapubliclyavailablesetofcorevalues.

Survey Respondents FTSE 100 Constituents

‘‘Integrity’’ ‘‘Integrity’’

‘‘Respect’’ ‘‘Respect’’

‘‘Excellence’’ ‘‘Health & Safety / Innovation’’

1 12 2

3 3

11


Figure 3 Frequency with which ethics, values and culture are discussed in board meetings

n Other

n At least once a year

n At least twice a year

n At least quarterly

n Throughout the year/every board meeting

15%

33%

14%

25%

14%

IBEanalysisof36qualitativeresponsestothequestion:Q. Is ethics, values and culture a regular agenda item in full board meetings? If yes, how frequently are these matters discussed (e.g. in every board meeting, once a year, etc.)?Base = 36 companies

Thisappearstohaveapositiveimpactonthecultureofanorganisation,as93%of40respondentsreportthat,intheiropinion,theircompanyhasasupportiveenvironmentforethics.

However,thesurveyhighlightsagapbetweenbehaviouratthetopandtheperceptionamongtheoverallworkforce.Only39%of39respondentsthinkthatstaffareveryengagedinethics. 5 Themajority(56%)considerstheworkforcetobeonly“somewhat engaged”.

5 Percentageofrespondentswhoindicateeither“very engaged”or“extremely engaged”

FTSE 350

Ofthe20responsesfromFTSE350companies,75%saytheirseniorleadershipisveryengaged.Asignificantincreasecomparedtotheoverallsample.Anoverwhelmingmajorityofrespondentsinthisgroup(96%of22)alsoreportthatethics,valuesandculturearearegulariteminboardmeetings.Figure4showsasignificantimprovementsince2013.

Figure 4 Ethics, values and culture as regular items in FTSE 350

65%

2013

Ethics in the boardroom 96%

2016Yes

Q. Is ethics, values and culture a regular agenda item in full board meetings?Base = 22 FTSE 350 companies in 2016 / 46 FTSE 350 companies in 2013

Yes

Ethics in the boardroom

12


Current ethical issuesAsoundethicalcultureprotectsbusinessfromavarietyofrisksthatmightinvolvedifferentbusinessdepartmentsandstakeholdergroups.Intheaftermathofanumberofhigh-profilecorporatescandals,companiesareunderincreasingpressuretostrengthentheirethicalculture.

Therearemanyissuesthatacompanymightneedtoaddress.Surveyrespondentsindicatethoseofparticularconcerntotheirorganisations,ashighlightedinFigure5.

Figure 5 Ethical issues of most concern to companies

Unsurprisingly,

answers to the

question as to what

were the three

biggest ethical

challenges facing

business threw up

many more than three

answers. Broadly,

they fell into two

separate categories:

on the one hand were

those who focused

on the way in which

business needed to

develop a new mind-

set with greater focus

on leadership, values

and statesmanship.

On the other were

those who preferred

to list a number of

more specific issues.

IBE(2016)The Institute of Business Ethics: The next 30 years

‘‘

Q. Which THREE of the issues below are you currently most concerned about in your company? (Tick a maximum of three.) Base = 44 companies

Bribery and corruption

Speaking up/whistleblowing

Supply chain/sourcing

Use of big data

Safety and security in the workplace

Managing conflicts of interest

Discrimination, harassment or bullying

Environmental responsibility

Human rights

Responsible marketing/advertising practices

Use of social media

Product development

Exploitative labour & modern slavery

Executive remuneration policies

Work-home balance for employees

Tax policy

50%

43%

41%

27%

23%

21%

21%

18%

18%

16%

7%

7%

7%

7%

7%

5%

Issue % of most concern to companies

ThethreeissuesthatareofmostconcerntoFTSE350companiesareoutlinedinFigure6.Fightingbriberyandcorruptionremainsatoppriorityformostcompanies–acontinuingtrendsince2010.Supplychainissuesarenowthesecondmostcommonconcern,trendingsharplyupwardsfollowingtheadoptionofthe2015UKModernSlaveryAct;theyrisefromtheseventhandsixthpositionin2010and2013respectively.Speakup,afterdroppingtosixthplacein2013,hasreturnedtoatopthreeposition.Interestingly,thereseemstobeagapbetweenwhatconcernscompaniesontheonehandandthepublicontheother. 6 Inparticular,taxpolicyisnotidentifiedbyanyoftheFTSE350companiessurveyed, whilstfortheBritishpublicthisisaconcernconsideredtobemostinneedofaddressing.

6 IBESurvey(2016)AttitudesoftheBritishPublictoBusinessEthics2016

13

http://www.ibe.org.uk/list-of-publications/67/47#pub2265


Figure 6 Ethical issues of concern to FTSE 350 companies and the British public

ConcernsaboutbriberyandcorruptionarelessprominentamongcompanieslistedinContinentalEuropethanin2013.Rankingjoint-thirdwithsupplychainmanagementandhealthandsafetyintheworkplace,only27%of11respondentsmentionbriberyandcorruptioncomparedto71%of14in2013.

EthicalissuesrelatedtotheuseofBigDataemergeasamatterofparticularconcerntocompaniesinContinentalEurope.Thisisthemostmentionedissuealongsidespeakup(orwhistleblowing).

Q. Which THREE of the issues below are you currently most concerned about in your company? (Tick a maximum of three.)Base = 22 FTSE 350 companies

Q. In your view of company behaviour, which two or three of these issues most need addressing? Base=2,000Adults18+askedonline

FTSE 350 British Public

TAX £10000!

68%

43%55%

28%36%26%

Bribery & corruptionSupply chain

issues

Speaking up

Corporate tax avoidance

Executive pay

Exploitative labour

14


Corporate Ethics ProgrammeA set of core values, supported by strong leadership engagement, provides a solid foundation for an organisation’s ethical culture. However, this is just the beginning of the journey. As outlined in the IBE Business Ethics Framework (Figure 1), it needs to be supported by an effective and comprehensive ethics programme.

Overview of key elementsAlmostallrespondents(95%of58)reporthavinganethicsprogrammeinplace.The main elementsoftheseprogrammesareshowninFigure7.Acodeofethics(orequivalentdocument)isthemostfrequentlymentionedtool,followedbyemployeeethicstrainingandmechanismsforemployeestoraisetheirconcerns.Alsocommon,thoughlessfrequent,aremonitoringprogrammesandinternalreportingonethicsperformance.

Figure 7 Elements of an ethics programme

2

Having a code

of ethics with an

implementation

programme is the

minimum requirement

for a company that

cares about its ethical

reputation. It is a

kind of preventative

medicine – without

a programme of this

sort a corporation

is vulnerable, simply

because it has

neglected to take the

way it does business

seriously.

IBECoreSeries(2016)Codes of Business Ethics: a guide to developing and implementing an effective code

‘‘

What is an ethics programme?

Forthepurposeofthissurvey,anethicsprogrammeisdefinedastheprocesses,policiesandtoolsforensuringthattheorganisationoperatesinaccordancewithitsvalues.

iQ. Does your programme include any or all of the following? (Tick all that apply.)Base = 45 companies

A global code of ethics (or equivalent document)

Employee training on ethics

A speak up (whistleblowing) line

Internal reporting on ethics performance

An ethics monitoring programme

External reporting on ethics performance

External stakeholder engagement

A board level ethics committee

A management level ethics committee

A network of ethics ‘ambassadors’ (or equivalent)

Other

100%

93%

93%

82%

80%

78%

71%

67%

60%

44%

13%

93%ofrespondentsfromFTSE350companiesreportthepresenceofanethicsprogramme.In2016,acodeofethics(orsimilardocument)continuestobethemostcommonelement.However,forthefirsttimerespondentsreportthepresenceofspeakupmechanismsjustasfrequently.Figure8showsacomparisonwith2013results.

15


Figure 8 Elements of an ethics programme in FTSE 350 companies

86%

2016 2013

Code of ethics (or equivalent) Speak up line

Code of ethics (or equivalent)

Employee training Employee training

Ethics monitoring programme External reporting on ethical performance

Speak up line

!

!

ETHICS

ETHICS100%

96% 91%

86%

98%

✓

Q. Does your programme include any or all of the following? (Tick all that apply.)Base = 22 FTSE 350 companies

Q. What are the main elements of your company’s ethics programme?Base = 43 FTSE 350 companies

Priorities of an ethics programmeWhenaskedabouttheprioritiesoftheirethicsprogramme,respondentssuggestthatthereisastrongfocusonembeddingethicalvaluestostrengthentheethicsculturewithintheirorganisation.Somerefertothepromotionofspecificvaluessuchas“honesty”, “integrity”and“respect”.

Otherrespondentsdrawattentiontooneofthespecificbuildingblocksofanethicsprogramme,suchasdeliveringappropriatetrainingandmanagingthemechanismsthatallowemployeestoraisetheirconcernsoraskquestions. 7

Theseprioritiesarethentranslatedintomorepracticalactivitieswhenrespondentsareaskedtostatethetasksthatoccupymostoftheirtime,asillustratedinFigure9.

7 IBEanalysisof43qualitativeresponsestothequestion:“What are currently the THREE main priorities for your ethics programme?”

In2016,all11ContinentalEuroperespondentssaytheirethics programmeincludesacodeofethicsand91%includeethicstrainingintheirethicsprogramme.Althoughrespondentsarelesslikelytoreportontheavailabilityofspeakupmechanisms(82%),theyarenowmoreprominentthanin2013whenonly75%ofcompaniesreportedtheiruse.Therelevanceofspeakuppracticesisreflectedinitbeingoneoftheissuesthatmostconcerncompanies.

16


Significant updatesEthicsprogrammesarenotdesignedtobestatic.Tobeeffective,theyneedtobeconstantlyupdatedandadaptedtotheevolvingneedsofthebusinessandchangingcircumstances.Of41respondents,68%statethatinvestmentintheirorganisation’sethicsprogrammehasincreasedinthelastthreeyears.27%reportthatithasstayedthesameandonly5%saythatithasdecreased.

Figure10showsthemostsignificantchangestothecompany’sethicsprogrammeasreportedbyrespondents.Itindicatesthatcompaniesintroducechangestotheirethicsprogrammeprimarilytoensurethattheircodeandpoliciesarekeptup-to-datewiththemostrelevantissues.Changestothegovernancesystemsoftheethicsfunctionarealsoreported,particularlytofulfiltheneedformoredirectreportinglinestothetopoftheorganisationandcommitteesinchargeoftheethicsprogramme.

Thismightbeaconsequenceoftheincreasedattentionthatboardsplaceonethics,asdiscussedinChapter1.Asemployeetrainingiscitedasapriorityformanycompanies,itfollowsthatintroducingnewtrainingorimprovingexistinglearningopportunitiesisfrequentlyreported.

Figure 10 Recent most significant updates to an ethics programme

1 2

3

4

5

6 7

Update or introduce code of ethics or specific policies

Strengthen the governance of the ethics function (incl. staffing and reporting line)

Update or introduce ethics training

Strengthen values and promote cultural shift

Improve third party engagement

Improve internal communications and speak up system

Improve monitoring of ethics

1 Developing and delivering ethics training

2 Monitoring ethics and conducting risk assessments

3 Embedding ethics into the business (incl. strategy and use of resources)

4 Managing enquiries and investigations/managing code and policies

5 Reporting to senior leaders and externally on ethics

6 Focusing on a particular issue e.g. anti-bribery and corruption (ABC)

7 Internal communication strategy

IBEanalysisof40qualitativeresponsestothequestion:Q. What THREE things currently occupy most of your time? Base = 40 companies

TO DO

✓

Figure 9 Main day-to-day tasks linked to an ethics programme

IBEanalysisof33qualitativeresponsestothequestion:Q. What was the last significant change you made to your ethics and compliance programme, and why? Base = 33 companies

17

Corporate Ethics Policies and Programmes: 2016 UK and Continental Europe SurveyChapter 2

Responsibility for the ethics programmeWhile every employee has the responsibility to promote an ethical culture, usually companies identify a specific department to oversee the ethics programme. The business function most commonly identified is the legal department (23% of 43), as Figure 11 illustrates. Results show, however, that the ethics function plays a central role in many organisations, either jointly with compliance (21%) or as independent function (16%). A number of respondents specify that collaborations across different corporate functions, including CR/Sustainability, Corporate Affairs, Risk and the Company Secretariat are key to performing the task effectively.

The number of companies where the person responsible for ethics has direct access to senior people is encouraging: 35% of respondents report to the General Counsel while a fifth say they report directly to the CEO. 8 This result might be read in parallel with the high level of senior leadership engagement mentioned above.

When asked about how the board of their company takes responsibility for the ethics programme, the majority of respondents (54% of 43) say there is a dedicated committee, while a third say that this responsibility is taken collectively by the board. Only 14% say that the board appointed a nominated individual to take responsibility for the ethics programme.

The growing trend among companies to deal with non-financial risk through a board-level committee is backed up by an IBE survey of FTSE 350 companies: 57 have formed a committee exclusively dedicated to delivering corporate responsibility and embedding values. 9

Figure 11 Business function with ultimate responsibility for an ethics programme

8 IBE analysis of 40 qualitative answers to the question: “What is the reporting line for your company’s ethics department? (E.g. do you report to the CEO, Company Secretary, General Counsel, Head of Legal, etc.)”

9 IBE Survey (2016) Culture by Committee: the pros and cons

n Compliance

n Ethics (as independent function)

n Other (please specify)

n Ethics and compliance (as joint function)

n Legal

Q. Which department or function has primary responsibility for implementing your company’s ethics programme?Base = 43 companies

12%

16%

23%

28%21%

ETHICS

Our history shows

us that we rise and

fall as one company,

which is why the

integrity of Our Code

rests in the hands

of every individual in

the bank. There are

many of us, and we

each carry the same

responsibility to each

other to ensure we

live by our values.

RBS (as available in 2016) This is Our Code

‘‘

18



10Calculationbasedon37responsestothequestion:“How many people do you have dedicated to ethics in your organisation? (Excluding ethics ambassadors or equivalent) – Full time employee headcount.”

11IBEGoodPracticeGuide(2010)EthicsAmbassadors

Figure 12 Business function with ultimate responsibility for an ethics programme in FTSE 350 companies

Thelegaldepartmentisaccountablefortheethicsprogrammeinabout athird(32%)oftheFTSE350companiessurveyed,increasingfrom29%in2013.Ethicsandcomplianceasajointfunctionisresponsiblein18%ofcompanies,complianceasastandalonedepartmentiscitedby14%ofrespondents.Only9%saytheethicsdepartmenthasultimateresponsibilityfortheethicsprogramme(seeFigure12).

1 2 32016 Legal Ethics & Compliance

(jointly) Compliance

2013 Company secretary or legal department Compliance CR or CSR

2010 Company secretary or legal department Compliance CR or CSR

Human resources

2007 Company secretary or legal department

Board, board committee or CEO Human resources


Board, board committee or CEO

Human resources Internal audit & finance

2001 Company secretary or legal department Human resources Board, board

committee or CEO


Human resources/board, board committee or CEO

Corporate or external affairs

1995 Board, board committee or CEO

Company secretary or legal department Human resources44%

21%

10%

7%

14%

14%

16%

16%

13%

11%12%

18%

Q. Which department or function has primary responsibility for implementing your company’s ethics programme? Base = 20 FTSE 350 companies in 2016Please note that the format of the question asked has changed in 2016.

14%

20%

27%

26%

12%

44%46%44%

45%41%

29%

32%

What is an ethics ambassador?

Thefundamentalroleofethicsambassadorsistochampiontheethicalvaluesoftheorganisation;supportingallemployeestoliveuptotheethicalstandardsexpectedofthem.Theyensureconsistencyofimplementationthroughoutanorganisationandareanintegralpartofacompany’sethicsprogramme.[…]Thepostofethicsambassadorsmaybefull-timeormaybetakeninadditiontoanemployee’sday-to-dayjob.Ethicsambassadorswillnormallybepositionedthroughoutthecompany;acrossbusinessunits,geographicallocationsandthehierarchyofanorganisation,andmaycompriseaninformal‘network’ofdiverseemployeeswithsimilarresponsibilities. 11

i

Staffing an ethics functionThenumberofstaffdedicatedtoethicsvariessignificantlyacrossdifferentorganisations.Onaveragethereare27full-timestaffworkingonethics,withthemajorityofrespondentsreporting20orfewerfull-timeheadcounts.However,thisrangesfromcompaniesemploying350full-timestafftocompaniesrelyingexclusivelyonpart-timestaff.10

Inaddition,56%of41respondentshaveanetworkofemployeesthatareselected,ofteninadditiontotheirrole,toformallyassistseniormanagementinpromotingandembeddinganethicsprogramme.Theseemployeeshavearangeofdifferentjobtitles,dependingontheorganisationandthescopeoftheirresponsibilities.Examplesreportedinthesurveyinclude:

EthicsAmbassadors EthicsAdvisors

EthicsCorrespondents EthicsCoordinators(orCSRCoordinators)

EthicsOfficers EthicsandComplianceOfficers

EthicsRepresentatives LocalPolicy/StaffChampions

19



TheinclusionofethicsintherecruitmentprocessesofFTSE350companieshasbeentrendingupwards.In2016,79%of14appeartodoso,upfrom63%of43in2013and38%of47in2010.

Overthreequartersofrespondents(77%of13)reportthatethicalbehaviourisincludedintheremunerationcriteriaoftheirorganisation.

Ethicalconductseemstobeassessedaspartofperformanceappraisals.Mostcommonlythishappenswithintheexecutiveteam,amongmanagersandotheremployees(93%of14).Thispracticeappearstobesignificantlymorewidespreadthanin2013whenitwasmostcommonlyreportedwithintheexecutiveteamandonlyin60%of41cases.

Acompanywhich

seeks to build a

positive relationship

with a wide

range of external

stakeholders must

be clear what its

values are, and its

own behaviour must

be consistent with

the message it gives

to stakeholders.

IBEReport(2016)Stakeholder engagement values, business culture & society

‘‘Engagement with stakeholdersHavingbothinternalandexternalstakeholdersonboardisparamountinbuildingastrongethicalcultureandensuringthatcorevaluesaresharedandunderstood.Employersuseavarietyofmethodstodemonstratetheimportanceofcompanyvaluesandethicalbusinessconducttotheirstakeholders.

Employees81%of31respondentsreportthatethicsplaysapartintheircompany’srecruitment process.Justunderthreequarters(72%of29)saythatethicalbehaviourisconsideredintheremuneration criteria oftheirorganisation.

Appraisalsalloweachemployeetodiscusstheirperformanceregularly,representinganimportantopportunitytoincludeethics.Thisopportunityisseizedbythemajorityofcompaniessurveyed,asFigure13shows.

Figure 13 Is ethical behaviour included in performance appraisals?

Q. Do performance appraisals in your company include reference to ethical behaviour?Base = companies in the following numbers:The board = 24 Managers/supervisors = 30 Executive team = 29 Other employees = 28 Business partners = 20

The

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Man

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supe

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etc

.

Othe

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Busi

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pa

rtner

s

YES

NO 33% 40%

60%✓

✗

67% 86% 86%87%14% 14%13%

20


Third partiesTorunasuccessfulbusiness,companiesneedtoensurethattheirrelationshipswithothercompaniesandindividualsuppliersaresoundandsecure–notonlyintermsofcommercialriskbutalsointermsofethicsrisk.Forthisreason,manyethicsandcompliancepractitionersareactivelyengagedwiththirdparties.85%of40respondentsareseekingtoengagethirdpartieswiththeirorganisation’sethicsprogramme.Inparticular,thefollowinggroupswerementioned:

What is ethical due diligence?

EDD[Ethicalduediligence]isanextensionoftheduediligenceprocesstocoverethicalissues.[…]EDDisbestdescribedasavoluntaryprocessundertakenbycompaniestoobtainandjudgeinformationofanethicalnatureasapreludetoabusinesstransaction. 12

i

Suppliers

Contractors&subcontractors

Agents

Charitableorganisations&NGOs

Consultants

Government

Industryspecificorganisations

Distributors&salesrepresentatives

Businesspartners&jointventures

Academicinstitutions

Localcommunities

Toassesstheethicalcharacterofa(potentialorexisting)supplierorbusinesspartner(e.g.ajoint-venture)andidentifypossiblesourcesofethicalrisk,amethodfrequentlyusediswhattheIBEreferstoasethical due diligence.91%of33respondentssaytheircompanycarriesoutduediligenceontheirsuppliersandotherbusinesspartnerstochecktheirethicalstandard.

12IBEReport(2007)Ethical Due Diligence: an introduction and guide

21



Building Blocks of the Ethics ProgrammeCode of ethicsA code of ethics has become an essential element of a company’s approach to business ethics. Overall, 98% of 44 respondents say their company has adopted a code of ethics or equivalent document. In the majority of cases, this document is made publicly available (81% of 41 companies with a code). The IBE considers this to be good practice, as it improves openness and engagement with external stakeholders.

TheseresultsaresupportedbypreviousIBEresearchwhichfoundthatalmostthreequartersofFTSE100companieshaveacodeofethics(orsimilardocument)easilyaccessibleontheirwebsite.13

The length of timeacompanyhashadacodeofethicsinplaceisoneindicatorofthematurityofitsethicsprogrammeandlevelofexperience.88%of40respondentsindicatethattheircodehasbeeninplaceforfiveyearsormore.Themajorityofrespondentsinthisgroupreportthattheircompanyhashadacodeformorethan10years.

Anotherimportantindicatoroftheattentioncompaniesgivetotheircodeisthefrequencywithwhichitisupdated.TheIBErecommendsthatthishappensatleasteverythreeyearstoensurethattheguidanceremainsmeaningfultoemployeesandaddressesnewconcernsthatmighthavearisen.Thesurveyshowsthatcompaniesareawareofthis,as48%of40respondentssaytheircompanyupdateditscodewithinthepreviousyear,whiletwofifthssayitwasupdatedbetweentwoandfouryearsago.

Whenquestionedonthepurposeofthecode,interestinglyrespondentsfocusoninternalelements,asshowninFigure14.Providingguidancetostaffisthemostfrequentlymentionedand,inlinewiththeprioritiesidentifiedfortheethicsprogramme,respondentsplaceemphasisonethicalculture.Concernsaboutexternalengagementandthecompany’sreputationarelesscommonlyreportedbyfar.

3

13IBEresearchconductedinJune2016amongFTSE100companies

If you want to

maintain a culture

of integrity within an

organisation then

guidance to staff is

absolutely critical and

this is normally in the

form of a code.

IBEPearls(2016)What are some of the tools companies can use to encourage ethical behaviour?

‘‘

96%of22FTSE350respondentssaytheircompanyhasacodeofethics.47%sayithasbeeninplacefor10yearsormore,increasingfrom38%of41in2013and25%of47in2010and2007respectively.Further,thenumberofcompaniesthathavehadacodeforfivetonineyearsincreasedto47%in2016from40%in2013.

58%of19respondentsreportthattheircodewasreviewedlessthanayearago,while32%saiditwasreviewedbetweentwoandfouryearsago.Only11%saytheircodewasreviewedbetweenfiveandnineyearsago.

22


Figure 14 Main purpose of a code of ethics

Q. What are the main purposes of your code? (Tick a maximum of THREE.)Base = 41 companies

88%

81%

61%

27%

20%

20%

12%

7%

2%

Embedding a code internallyToensurethecode’seffectiveness,itisvitalthatstandardsofbehavioursetoutinthecodeareproperlyexplainedtostaff,especiallytonewrecruits.88%of41respondentsincludethisintheinductionofnewemployees.Makingthecodeavailableontheorganisation’sintranet(85%)andprovidingspecifictrainingonthecode(76%)arealsopopularwaysofhelpingemployeesfamiliarisethemselveswiththecode.

Inadditiontothis,almostfourinfivecompanies(78%of40)includeconformitytothecompany’scodeincontracts of employment.Furthermore,companiesmayrequiresomeoftheiremployeestocertifythattheyhavereadandunderstoodthecodebysigningitonanannualbasis.Figure15showsthatthisisoftenarequirementfortheexecutiveteamandmanagersorsupervisors,whileitislesscommonforotherstaffandbusinesspartners.

Toaddsignificancetotheircode,anumberoforganisationsstatethatnon-compliancewiththecodewillhaveconsequences.Thesurveyhighlightshowevidencebacksupsuchstatements,asaboutfourinfiverespondents(81%of37)reportthatbreaches of their codehaveledtoemployeedismissalsinthepastthreeyears.

Acodeofethics(orsimilardocument)isviewedasanimportanttooltocreateasharedcorporateculturewithinlistedcompaniesinContinentalEurope,asmentionedbynineoutoftenrespondents.Providingguidancetostaffcloselyfollows,asmentionedbyeightoutoftenrespondents.

Providing guidance to staff

Creating a shared and consistent company culture

A public commitment to ethical standards

Guarding reputation

Reducing operational risk

Providing guidance to contractors and other business partners

Helping to secure long term shareholder value

Improving the company’s competitive position

Decreasing liability in the case of misconduct

How to write an effective code of ethics?

Oneofthemosteffectivewaystoensurethathighstandardsofbusinessintegrityarepartofthecultureofanorganisationistoproduceandpromulgateaclearlywrittencodeofethics.

TheIBE9–StepModelfordevelopingandembeddingacode(Appendix1) illustrateshowthiscanbedoneeffectively. 14

i

14IBECoreSeries(2016)Codes of Business Ethics: a guide to developing and implementing an effective code

23



Figure 15 Are employees required to sign the code?

InFTSE350companies,themostcommonlyusedmethodtocommunicatetheexistenceofacodeofethicsinternallyisincludingitaspartoftheinductionfornewjoiners(84%of19).Thisoptionwasofferedforthefirsttimethisyear.Postingthecodeonthecompany’sintranet,whichhadbeenthemostpopularmethodsince2004,fallstosecondpositionalongwithpresentingitasastand-aloneguideorbooklet(79% of19).

Raising awareness about a code externallyExternalengagementwithethicsisoftenreflectedinthecode.Thissurveyhighlightshowcommonitisforstakeholdersbeyondemployeestoberequiredexplicitlytoliveuptotheethicalstandardssetoutinacompany’scode.Thisisparticularlythecaseforsuppliers,whilebusinesspartnersandjointventurescloselyfollow.Onerespondenthighlightsthat“everyone who acts on behalf of the company”isrequiredtofollowsimilarethicalstandards.72%of32companiesprovideseparateguidancetosuppliersintheformofasupplier’s code of ethics.

Thecompanywebsiteisthemostcommontoolusedfortheexternal communication of the code.Boththecompany’sannualreportandspecificreportsoncorporateresponsibilityarealsoseenasimportanttoolstoreachouttoexternalstakeholders(seeFigure16).

Q. Are employees required to sign against the code on an annual basis?Base = companies in the following numbers:The board = 35 Managers/supervisors = 35 Executive team = 36 Other employees = 35Business partners = 34

The

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Man

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.

Othe

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Busi

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pa

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s

YES

NO 60%

40% 37% 21%49%

51%

50%

50% 63% 79%

✓

✗

24


Themostcommonmethodtocommunicateacompany’scodeofethicsexternallyamongFTSE350respondentsistopostitonthecompanywebsite(87%of15).However,thishasslightlydecreasedsince2013(93%of41).Thesecondmostcommonmethodistomentionitinannualreports(80%),althoughslightlylesspopularthanin2013(85%).

Asignificantproportionofrespondents(67%)usetheircorporateresponsibilityreport(orsimilar)toenhanceexternalcommunicationsaboutthecode,whilstabouttwoinfivehighlightthattheyundertakesuppliertraining.

Q. How does your company communicate the existence of its CODE to EXTERNAL STAKEHOLDERS? (Tick all that apply.)Base = 33 companies

Posted on company website

Mentioned in annual report

Mentioned in corporate responsibility (or similar) report

Supplier training

Direct distribution

Through external social media

Discussion in newsletters

82%

76%

73%

36%

24%

15%

12%

Figure 16 External communication of a code

15IBEanalysisof31qualitativeresponsestothequestion:“What have you found to be the most effective way of embedding your code throughout your organisation?”

Code FormatMostorganisationsmaketheircodeavailableinpdfformat(88%of41).Manyorganisationsproduceahardcopy(81%)oradedicatedwebsite(76%).However,afewcompanieshavefoundcreativewaysofpresentingitasdedicatedappsfortabletsorsmartphones(10%).Morethanaquarter(28%of40)reportthattheircodehasinteractivefeatures.Forinstance,onerespondentexplainsthatinhis/hercompanythecodeisavailableasaninteractivemobileapp,includingvideomessagesfromtheleadershipteam.OthersincludevideosofscenariosoftenaccessiblethroughQR(QuickResponse)codes.

It works!

Effective ways of embedding a code of ethics throughout an organisation 15

Manyrespondentsfindthatspecificcode training,eitherface-to-faceoronline,isstillthemosteffectivewaytoembeditwithintheirorganisation–supportedbycommunication campaigns aimedatraisingawareness.

Theroleofleadersandmanagersisalsoimportantinsettingtherighttone from the top,leadingbyexampleandeffectivemanager-leaddiscussions.

✓

25


Communication strategyInternalcommunicationsplayanimportantroleinestablishinganethicalculture.However,morethanaquarterofrespondents(26%of42)saytheircompanydoesnothaveaninternalcommunicationstrategyonethics,valuesandculture.

Astrongercommitmentmightimprovetherelativelylowperceptionoftheworkforce’sengagementwithethicsoverall,asoutlinedinChapter1.Figure17highlightssomeofthemessagesthatrespondentswithacommunicationstrategyconsiderparticularlyimportant.

Figure 17 Most frequent messages on ethics communicated within companies

Inaddition,manycompaniesincludeanumberofstatisticsandindicators toraiseawarenessoftheirethicsprogramme’seffectiveness.Figure18detailswhatkindofinformationtheycommunicateandtowhom.Theboardofdirectorsandtheexecutiveteamreceivemoreaccuratereports,whilebusinesspartnersdonotappeartoreceiveasmuchinformation.Somerespondentsregularlycommunicaterelevantethicsinformation,suchasriskandaudit,toboardcommitteesorethicsrepresentatives.Workcouncilsandregulatorsreceivereportswhennecessary.

Communicating

ethical values

is not as simple

as informing

employees about

facts, figures and

procedures and

checking they

are compliant.

[…] Therefore,

discussions about

ethics must start

with concepts that

touch employees’

sense of self.

IBEGoodPracticeGuide(2014)Communicating ethical values internally

‘‘

1 2

3

4

5

6

7

Values and culture

Doing the right thing and ethical dilemmas

Speaking up

Code and other policies

Specific issues e.g. anti-bribery and corruption (ABC)

Ethics is everyone’s responsibility

Ethics promotes long-term success and good reputation

IBEanalysisof30qualitativeresponsestothequestion:Q. What messages are being communicated regarding ethics in your organisation? Base = 30 companies

26


Q. What information do you report on regarding ethics to the following EMPLOYEE groups? (Tick all that apply.)Base = companies in the following numbers:The board = 38 Managers/supervisors = 29 The executive team = 37 Other employees = 17 Business partners = 9

Ethics training completion rates

Code sign off rates

Number of disciplinary actions taken against the code

Number of speak up (whistleblowing) contacts

Number of speak up (whistleblowing) contacts leading

to disciplinary action

Number of supplier/other business contracts terminated

for ethical reasons

Other

Answer Options

The

boar

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Man

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supe

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etc

.

Othe

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Busi

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pa

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s

71%42%

68%

92%

59%

65%

29%

47%

35%

12%

12% 11%

56%

56%

44%

22%

22%

33%

79%81%51%

62%

95%

45%

52%

52%

38%71% 73%37%

16% 16%

38% 21%

4%

Figure 18 Statistics on ethics reported internally

Thewayorganisationscommunicatehowtheyexpectemployeestobehavecanbekeytobuildinganethicalculture.Acompanymightwanttousedifferentcommunication stylestoreachouttodifferentaudiences.Bothelectroniccommunicationtools(90%of40)andface-to-facediscussions(88%)arewidelyused.Otherpopularmethodsincludeprovidinghardcopiesandmaterials,displayingpostersorothergimmicks(75%).

Somerespondentsspecifythatteammeetingsandtrainingsessionsaregoodopportunitiestoemphasiseethicsmessagesface-to-face.Othersstresstherisingimportanceofinternalsocialmedianetworks,suchasYammer,tofacilitateaconversationaboutethics.Onerespondentstatesthathis/hercompanyorganisesawardsandrecognitionschemesbasedonthecompany’svalues.

Again,thesurveyhighlightsthattheethicsfunctionshouldnotstandaloneincommunicatingethicalvaluesacrossglobalbusiness.In60%of40casestheresponsibility of the communication strategyissharedbetweentheethicsfunctionandinternalcommunications.

27


Anumberofrespondentsemphasizethatanappropriateexternal communications strategyplaysanimportantroleinengagingexternalstakeholders.All27companieswhorespondedthinkitiscrucialtocommunicatetheexistenceofacodetoexternalstakeholders.59%saytheycommunicatethenumberofcontactsmadetotheirspeakupsystemandaboutaquarter(26%)decidedtodiscloseinformationonthesubstantiationrateanddisciplinaryactionstakentoexternalstakeholders.

Ethics trainingEthicstrainingbuildsethicsawareness,supportsthecommunicationstrategyandhelpsemployeesunderstandtheircompany’sexpectationsofthem.Itmaynotbespecificallycalledethicstrainingandmaybeintegratedintootheremployeetrainingschemes,suchasanti-briberyandcorruptionormanagementskills.Aboutthreequartersofcompanieswhichofferethicstrainingprovideitasastandalone(76%of37),whileaboutaquarter(24%)incorporateitwithinotherkindsoftraining.

Inmostcases,trainingismandatory,especiallyfortheexecutiveteamandformanagersorsupervisors(seeFigure19).Fewerrespondentsprovidedetailsonthetrainingavailabletobusinesspartnerswhichtendstobeofferedonavoluntarybasis.

Training is an

essential element of

a corporate ethics

programme. Failing

to train staff in

the importance of

ethical values and

how to use them

leaves companies

open to integrity

risk and reputational

damage.

IBEGoodPracticeGuide(2012)Developing and using business ethics scenarios

‘‘

It works!

Communication initiatives with the most impact 16

Trainingonlineorface-to-face.

Engagement with managementtocascadethemessagethroughouttheorganisation.Demonstratingthesupportofseniormanagerssetstherighttone from the top.

Gimmicksandvideos,includingcartoonvideosandlight-heartedcomicsdisplayinganumberofunethicalbehaviours toavoid.

!Be careful …

Communication initiatives that don’t work 17

A top-downroll-out,duetoalackofrelevanceontheground.

Excessivefocusonstatistics,especiallyiftheyarecommunicatedinawaythatistooimpersonal(e.g.emailorposters).

Overzealouscompliance enforcementcancreateacultureoffear,raisingthelevelofrisk.

Function-ledcommunicationsseemtobelesseffectivethanbusiness-ledmessages.

Messagesthataretoo narrow in their scopeornotdesignedforaglobalaudience(i.e.beingtoo‘westernised’).

16IBEanalysisof27qualitativeresponsestothequestion:“Which of your communication initiatives have created the most impact amongst your employees?”

17IBEanalysisof15qualitativeresponsestothequestion:“Have you tried anything that really didn’t work? (If so, what?)”

✓

28


The

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Othe

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Busi

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pa

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sYES

NO

YES

NO

25%

✓

✓

✗

✗

Is the training mandatory?

Included in the induction?

Q. Is the training mandatory or voluntary for the following employee groups?Base = companies in the following numbers:The board = 32 Managers/supervisors = 37 The executive team = 36 Other employees = 36 Business partners = 18

Q. Does the induction process include training on ethics for the following groups?Base = companies in the following numbers:The board = 32 Managers/supervisors = 37 The executive team = 35 Other employees = 34 Business Partners = 18

94%

94%

95%

95%91%39%

81% 61%

75%

19%

17%6% 5%

5% 6%9%

83% 50%

50%

Findingsovertimesuggestasteadyincreaseinthepercentageof FTSE350companiesthatofferethicstrainingtoemployeessincethisquestionwasfirstintroducedin1998,withadipin2010.

FTSE350companiestendtotraintheirstaffmoreregularlythanin2013,particularlyseniorleadersandmanagers.Respondentsreportthattheircompaniesoffertrainingtotheboard,theexecutiveteamandmanagersorsupervisorsonanannualbasisratherthanonlywhenneeded,aswasthecasein2013.

continues

Managersorsupervisors,otheremployeesandtheexecutiveteamaremorelikelytoreceiveethicstrainingaspartoftheinduction process.Thisappearstobecommonpracticeforallemployees.

Trainingisoftendeliveredonanannualbasis,particularlytomanagersorsupervisors(43%of35),otheremployees(37%of35)andtotheboard(41%of34).Businesspartnersaremorelikelytobeofferedethicstrainingwhenitisthoughtnecessary(56%of25),whileonly16%statethattheyaretrainedannually.

Figure 19 Is ethics training mandatory? Is it included in the induction process?

29


Figure 20 How often is ethics training delivered?

Training format Onlinetrainingisthemostcommontraining method used(53%of38),howeverasignificantnumberofrespondents(37%)statethattheyprovidebothonlineandface-to-facetraining.Somerespondentssaythatface-to-facetrainingisusedtotargetspecificgroups(e.g.management)orissuese.g.anti-briberyandcorruption(ABC).

Amongthetoolsused,presentingemployeeswithethicaldilemmasandscenariostostimulatedebateiswidespread(86%of36).Multimediatoolssuchasdedicatedvideosarealsopopular(78%).Otherelementssuchasgames(19%of36)andappsfortabletsorsmartphonesarecurrentlylesspopular(14%of36).

Q. How frequently do you deliver ethics training to the following employee groups? (Tick all that apply.)Base = FTSE 350 companies in the following numbers:The board = 17 Managers/supervisors = 18 The executive team = 18 Other employees = 18 Business partners = 14

Duetothechangeinmethodology,thecomparisonshowninthetableaimsatillustratinggeneraltrends.Theresponseoptionchangedsignificantlysince2013.Asanexample,theoption“less than once a year” in2013was“biannually”.In2013,theoption“after major revision of the code”wasgiven,butitisnotreportedinthisfigure.

More than once a year

Annually

Less than once a year

As required

Once only

Never

2016 2013 2016 2013 2016 2013 2016 2013 2016 2013

The

boar

d Th

e ex

ecut

ive

te

am

Man

ager

s,

supe

rvis

ors,

etc

.

Othe

r em

ploy

ees

Busi

ness

pa

rtner

s

12% 17% 17% 17%

19%

19%

n\a n\a n\a n\a n\a

21%

6% 6%

2% 2%

7% 10% 11%

48% 48%

24%

53% 44% 44%

29% 39% 39% 39%

29% 33% 33%

6% 0%

0%

0% 0%

0%

0%

0%0%

33% 38%

21% 21%

22%

33%

10%

7%

21%

14%

14%

10%

52%50%

7%

7%

Thepercentageofrespondentswhosaythattrainingisprovided“only once”droppeddramatically.However,stillaroundoneinsevenreportthatnotrainingisprovidedforbusinesspartners.Figure20illustrateshowfrequentlytrainingisdeliveredtodifferentgroupsinFTSE350employees.

continued

2%

2%

2%

30


In72%of36cases,training sessionstaketheformofrelativelyshortsessionsthatlastnomorethanonehour.Inthemajorityofcompanies,theyareconductedbyinternalstaff.In59%of34companiestheyareledbytheethicsfunction.44%ofcompaniesreporttheinvolvementofotherinternaldepartments,oftenHRorcompliance,eitherinisolationorincollaborationwithotherfunctions.Theinvolvementofanexternalspecialistisreportedonlyin21%ofcases.

Figure21highlightsthattrainingisfrequentlyfocusedonthestandardssetoutinthecodeoronspecificissuesthatneedfurtherattention.Otherssaythattrainingisaimedatimprovingethicaldecisionmaking,explaininghowvaluesareappliedinpractice.

Figure 21 Most frequent topics in ethics training within companies

1 2

3

4

5

6

Specific issues (e.g. ABC, data protection, fair competition)

Code of ethics

Values and culture

Speak up

Ethical decision making

Ethical leadership

IBEanalysisof31qualitativeresponsestothequestion:Q. What are the main topics of focus for your ethics training?Base = 31 companies

It works!

Valuable training techniques or resources 18

Interactive participation sessionsareaneffectivewaytoconveycontentandencouragedebate,particularlythroughanonymisedreallifescenariosandcasestudies.

Respondentsalsosuggestthat story tellingtechniques,videosandsomekindofgamification,suchasquizzesandtoolkitsformanagersishelpful.

Face-to-face trainingishighlightedasuseful,asitcreatesanopportunityforemployeestodiscussgreyareas/issuesofconcernrelevanttotheirday-to-dayactivitiesfreely.

18IBEanalysisof21qualitativeresponsestothequestion: “Do you have any training techniques or resources that you have found to be particularly valuable?”

✓

31


Speak upCreatinganopencultureisessentialtoprotectacompanyagainstethicalrisk.Employeesmustfeelfreetoraisetheirconcernsaboutbehaviourthatis,orappearstobe,inbreachoftheprinciplesdefinedinthecode.Mostglobalcompaniesprovidemechanismstospeakup,raiseconcernsoraskquestionswhenunsureaboutwhatcourseofactiontotake.Speakuplinesareanelementofgoodgovernance,astheycanactasanearlywarningsystemforpotentialethicalrisk.

98%of41respondentssaythattheircompanyprovidesaconfidentialmechanismforemployeestoraiseethicalconcernsoraskquestions.Formostofthem(92%of39),ahelpline(sometimesreferredtoashotlineoradviceline)iscentral.Moreover,thesurveyshowsthatinalmostfouroffivecompanies(79%of33)thisisnotlimitedtoemployees–otherstakeholderscanraisetheirconcernsthroughthespeakupsystemtoo.

97%of39respondentsreportthattheirsystemallowsconcernstoberaisedanonymously.Goingbeyondconfidentialityandassuringanonymitycanbeavitalingredientinencouragingemployeestocomeforward.However,itmakesitmoredifficultforcompaniestokeepthepersonwhoraisedaconcernanonymouslyinformedontheoutcomeofaninvestigation.Moreover,insomecases,itmightleadtomaliciousreportswhichcouldseriouslydamagesomeone’sreputation.

Each of us has a

responsibility to

speak up if we

see something

unsafe, unethical or

potentially harmful. If

you have a question,

need help or want

to raise a concern

you have several

options.

BP Our Code Our Responsibility (asavailable in2016)

‘‘

AllrespondentsfromcompanieslistedinContinentalEuropereport thattheirspeakupsystemallowsanonymousreporting.Bycontrast,thispracticeisstronglydiscouragedinmanyEuropeanjurisdictionswhereevidenceobtainedthroughanonymousreportsisinadmissible. 19

LegislativeinterventionsinsomeEuropeancountriesfavouringspeakuppracticesseemtohavehadapositiveeffectonbusinesspractice. 20 However,someunfavourableperceptionsseemtopersist. 21ResearchbyTransparencyInternational(2013)suggeststhatthetermwhistleblower–forwhichthereisnoliteraltranslationinGerman–isnotwellknownamongtheGermanpublic.Similarly,SpainisoneofonlysevenEUcountriesgivena“none or very limited”ratingforwhistleblowerprotectionlaws.InItaly“whistleblowing as a productive corruption-fighting tool has begun to garner attention only recently.” 22

19Lexology(2015)Whistleblowing in the EU and data privacy

20Forexample,theItalianParliamentisdebatingalawaimedatstrengtheningtheprotectionof employeeswhospeakuponwrongdoingsintheircompany.

21IBESurvey(2015)Ethics at Work: 2015 survey of employees (Continental Europe)

22TransparencyInternational(2013)Whistleblowing in Europe: legal protections for whistleblowers in the EU

32



Halfofrespondents(50%of22)saythatthemostpopularreportingtoolisstillthetelephone,aboutaquarter(23%of22)receivemostcontactsviaemail andafifth(18%of22)throughthehelpline.Slightlyfewerrespondents(14%of22)thinkthatemployeesintheirorganisationraisetheirconcernsmainlyinperson.23

RetaliationFosteringanopenculturewhereemployeesareabletovoicetheirconcernsconfidentlyandwithoutfearofreprisalremainsachallengeformanyorganisations.AccordingtorecentIBEresearch,20%ofemployeesinBritainsaytheyhavebeenawareofunethicalconductintheirworkplaceovertheprecedingyear.However,only55%oftheseraisedtheirconcerns.Themostcommonlyreportedreasonfornotdoingsowas:“I felt it might jeopardise my job”.24

Organisationsseemtobeawarethatfearofretaliationcanhinderthewillingnessofemployeestospeakupandtheoverwhelmingmajorityofcompanieswithspeakupmechanismssaythattheircompanyhasapolicyaimedatprotectingthosewhospeakupfromreprisal(97%of39).Somerespondentshighlighthowtheircompanyaddressesthisintheircodeaswellasinotherpolicies(e.g.investigationpolicy).

However,onlytwoinfive(41%of39)establishaformalisedapproachtomonitoring retaliation.Inmanyinstances,thisisachievedthroughmakingpersonalcontactwiththosewhoraisedtheirconcerntounderstandwhethertheysufferedanyformofretaliation.Forinstance,onerespondentexplainsthathe/shesendsashortquestionnairetoasampleofpeoplewhoraisedanissuethreemonthsafterthecasewasclosed.

What is an ethics helpline?

Forstaffwhodonotfeeltheirconcernhasbeenaddressedbytheirlinemanagerorwhofeeluncomfortableraisingaparticularissuewithlocalstaff,itiscommonpracticefororganisationstomakeadedicatedtelephoneline,emailorweblinkavailable.Forsomecompaniesthiswillbeahelpline(suchasanethicshelpline)orwebpagewhichcanbeusedforenquiriesabout,forexample,theethicscodeoraboutclarifyingwhatiscorrectbusinesspractice,aswellasforreportingconcernsaboutmisconduct. 25

i

Mirroringtheresultsin2013and2010,allFTSE350respondentshavea“formal mechanism for employees to raise ethical concerns or ask questions confidentially”.Thishassteadilyincreasedsince1995.

AllFTSE350companiesalsosaythattheirspeakuparrangementsincludeahelpline(orequivalent),whichistrendingupwardsfrom47%in2004whenthequestionwasfirstintroducedto72%in2007,79%in2010and93%in2013.

23Somerespondentsmentionedtworeportingtoolsthatwereequallythemostusedintheirorganisation.

24IBESurvey(2015)Ethics at work: 2015 Survey of Employees – Britain

25IBEGoodPracticeGuide(2007)Speak Up Procedures

33




‘‘ ValuesAssurancelooksatriskthroughthelensofcultureandbehaviour.Using a Values Maturity Model, a team of trained assessors evaluates maturity along ten dimensions. Viewing risk through the lens of culture and values provides a proactive way to understanding risk and addressing signals before issues arise. This diagnostic, along with an assessment against the Internal Control Framework and regular risk management compliance boards, provides a holistic view of risk in the organisation. ’’

There is little that

is straightforward

about culture, and

no single ‘good’

or ‘bad’ culture

that provides a

template against

which others can be

ranked. Culture is a

differentiating factor

that can vary within

as well as between

organisations. It is

hard to define, hard

to measure, hard

to manage and

generally extremely

hard to change,

and certainly harder

in each case than

are compliance or

conduct.

BankingStandardsBoard(2015/16)AnnualReview

‘‘

1 2

3

4

5

6

Identifying and mitigating risk

Measuring compliance with/effectiveness of the programme

Ensuring appropriate controls

Identifying areas that need more attention

Defining proprieties and budgeting

Industry benchmark

IBEanalysisof23qualitativeresponsestothequestion:Q. What is the intended purpose of your risk assessment process?Base = 23 companies

RISK

✘

✔✔

!

Risk assessment, monitoring and accountabilityMonitoringtheeffectivenessoftheethicsprogramme,andwhetherthevaluesareembeddedthroughoutalllevelsoftheorganisation,helpstounderstandwhethertheapproachtakeniseffectiveandtoidentifyareasthatrequirefurtherattention.Thesurveyshowsthat85%of40respondentssaytheircompanytakesstepstomonitortheeffectivenessoftheirethicsprogramme.

Risk assessment78%of36respondentsreportthattheyareinvestinginethicsandcomplianceriskassessmentstohelpmonitoringandmanagingtheirethicsrisks.Figure22illustratesthemainpurposesofriskassessmentprocedures.

Inparticular,onerespondentprovidesapowerfulillustrationofthepurposeofriskassessmentsinhis/herorganisation:

Figure 22 Most frequently mentioned purpose of risk assessment procedures

Thesubjectoftheassessmentvariesfromcompanytocompany,aseachorganisationfocusesontherisksandissuesthataremostrelevanttothem.Somerespondentshighlighthowthecodeactsasapointofreferenceindecidingwhattopicstoincludeintheassessment.Amongthemostcommonlyassessedrisks,respondentsmentionbriberyandcorruption,conflictofinterest,fraudandfinancialcrime,competitionissuesandantitrust.26

26IBEanalysisof22qualitativeresponsestothequestion:“What is the scope of your risk assessment? (Issues, locations, etc.)”

34


‘‘ For those risks where E&C [Ethics and Compliance] is the primary second line of defence, E&C leads the risk assessment. For those risks where E&C provides the second line of defence jointly, E&C collaborates with Legal to complete the risk assessment. Where other primary functions (for example the IT Department) who own the respective compliance programme (e.g. data security/cybersecurity), that function leads the risk assessment. ’’

‘‘ The review is conducted by a team of dedicated professionals who are trained in collecting qualitative data. The multi-disciplinary team includes backgrounds in psychology, organisational development, internal audit, compliance and manufacturing. The team size varies based on the size of the entity undergoing a review. Guest auditors are also leveraged to bring in business expertise and to deepen understanding of [our] values. ’’

What is an ethics and compliance risk assessment?

Agoodethicsandcomplianceriskassessmentincludesbothacomprehensiveframeworkandamethodologyforevaluatingandprioritizingrisk.Withthisinformationinhand,organizationsmaybebetterabletodevelopeffectivemitigationstrategiesandreducethelikelihoodofamajornoncomplianceeventorethicsfailure,settingthemselvesapartinthemarketplacefromtheircompetitors. 27

i

27DeloitteCompliance risks: What you don’t contain can hurt you

Anumberofrespondentsexplainthattheirorganisationconductsriskassessmentsacrossallbusinessunitsworldwide.Afewothers,however,pointoutthattheirprocesscoversaselectedsampleoftargetedlocations.

Respondentshighlighthowtheassessmentprocessoftenrequiresajointeffortthatinvolvesdifferentfunctionsbothatlocalandatgrouplevel.Asonerespondentexplains,complianceandethics–eitherjointlyoreachinitsownright–arefrequentlymentioned:

Otherrespondentsrecordhowaspecificteamofdedicatedprofessionalsissetup:

Finally,somerespondentssaythattheassessmentisdonebydifferentpeopleatdifferentlevels(e.g.contractmanagersorbusinessunitexecutives),whiletheethicsteamisresponsibleatgrouplevel.

Mostrespondentsconductthisassessmentonanannualbasis,asshowninFigure23.

Figure 23 Frequency of risk assessment procedures

n Other

n At least twice a year

n At least once a year

n At least every 2 years

IBEanalysisof22qualitativeresponsestothequestion:Q. How frequently do you conduct the risk assessment?Base = 22 companies

5%14%

14%

68%

RISK

✘

✔✔

35


85%

82%

73%

73%

Q. How do you monitor the effectiveness of your ethics programme to ensure that your values are embedded throughout the organisation? (Tick all that apply.) Base = 33 companies

Percentage of employees receiving ethics training

Use of speak up data

Questions on ethical standards in staff surveys

By use of internal audit

Board reports

External audit processes

Dedicated ethics surveys

Code sign off numbers

Engagement with external stakeholders

52%

42%

36%

33%

33%

IBEanalysisof13qualitativeresponsestothequestion:Q. What are your primary measures of success of your ethics programme? Base = 13 companiesRespondents to this question answered “yes” to the question: Q. Do you have KPIs for ethics?

• Volume, nature and substantiation of concerns received through all channels

• Breaches of the code

• Case closure days

• Time to respond to a report

• Outcomes of internal controls

• Employee survey results

• Customer surveys and feedback

• Internal Audit reports

• Usage of online registers (e.g. gifts and etertainment/conflict of interest)

• Number of new employees receiving the code

• Use of communication

• Code certification

• Training completion rate

• Reward & Recognition

Measuring Ethics

Misconduct Surveys & Controls Other

Monitoring an ethics programmeMonitoringtheethicsprogrammeisapowerfultooltoensureitworksandcontinuestoimprove.However,someorganisationsmightstillfindthedefinitionofappropriatemonitoringmechanismsachallenge,asitmightbedifficulttofindmetricstomeasure‘soft’elementssuchasvaluesandbehaviours.ThemostfrequentlyreportedmetricsareshowninFigure24.

Figure 24 Most frequently used metrics to monitor the effectiveness of an ethics programme

48%of31companieshavesetspecificKey Performance Indicators(KPIs)tomeasureethics.Figure25illustratesexamplesofKPIsusedbyrespondentstomeasurethesuccessoftheirethicsprogramme.

Figure 25 KPIs to measure the success of an ethics programme

36

Consistentwithpreviousyears,ofthe20responsesfromFTSE350companies,fourinfivemonitortheirethicsprogramme.However,only68%(of19)conductanethicsandcomplianceriskassessment.

RespondentsfromFTSE350companieswerethenaskedhowtheircompaniesconductthemonitoring.Asin2013,theuseof“speak up data” isthemostcommonindicator.Forthefirsttimesince2007whenthisquestionwasintroduced,“questions in staff surveys on ethical standards” isthesecondmostpopularmethod.Anotherindicatorreportedmorefrequentlythisyearisthe“percentage of employees receiving ethics training”.Figure26illustratesthechangesreportedovertime.

Themajorityofrespondentsseekexternal assurancesoftheirethicalperformance(53%of30).TheDowJonesSustainabilityIndex(57%of14),theUNGlobalCompact(43%of14)andtheFTSE4GoodIndex(29%of14)arethemostfrequentlycitedexternalstandards.

Figure 26 How to monitor an ethics programme

Q. How do you monitor the effectiveness of your ethics programme to ensure that your values are embedded throughout the organisation? (Tick all that apply.)Base = 15 FTSE 350 companies

2007 2010 2013 2016

Other (please specify)

Dedicated ethics survey

External audit processes (previously ‘External

assurance provision’)

Engagement with external stakeholders

Code sign-off rate

Board receives reports on ethical violations/

misconduct

Recording the percentage of employees

receiving ethics training

By use of internal audit

Questions in staff surveys on ethical standards

Use of speak up/hotline data

7%

73%

73%

80%

40%

40%

35%

38%

79%79%

21%

21%

44%

64%

25%

26%

27%

9%

33%

60%

87%

62%

58%

56%

51% 59%

84%

88%62%

71%

What is an external assurance engagement?

Aprocessthatresultsintheassuranceproviderexpressingaconclusionabouttheevaluationormeasurementofsustainabilitydisclosuresagainstreportingcriteria.Theassuranceengagementmayinvolveassessingnotonlytheaccuracyandreliabilityofwhatisdisclosed,butalsotheprocessesfordecidingwhatissuesanddataaredisclosed. 28

i

n\a

n\a

n\a

n\a

n\a

n\a

n\a

n\a

n\a

n\a

28GlobalReportingInitiative(2013)The external assurance of sustainability reporting

37 Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyChapter3

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveySummaryandConclusion

Summary and ConclusionEthicaldilemmasveryrarelyhaveastraightforwardsolution.Similarly,itisdifficulttoidentifybeyonddoubtthemostappropriateanswertothemanyethicalissuesthatorganisationsfaceintheirday-to-daybusinesspractice.

Ratherthansuggestingtherightwayofdoingthings,thissurveyaimstopromoteadebatearoundkeyelementsofethicalcultureinbusinessandencourageorganisationstosharegoodpracticeandmaintainit.

Threeimportantissuescanbeinferredfromtheresultsofthissurvey–theydeserveparticularattention:

• Engagementofseniorleaders Inthepast,somearguedthatboardsofdirectorsshouldfocusexclusivelyonfinancialrisks,whileethicswasoftentranslatedintoanumberofadd-onactivitiestoimprovethecompany’simage.Thissurveysuggestasignificantshiftinperceptionbymanyorganisations.Accordingto86%ofrespondents,ethics,valuesandcultureareregularlydiscussedinboardmeetings.Boardengagementappearstohavegrownstronger,particularlyinFTSE350companieswherethepercentageofrespondentswhosaythatthesetopicsareregularlydiscussedatboardlevelhasincreasedbyover30%since2013.

• Employeeethicstrainingonaregularbasis Respondentsoftenstresstheimportanceofprovidingappropriateethicstrainingfortheiremployeesonaregularbasis.AmongFTSE350companies,ethicstrainingtendstobedeliveredmoreregularlythanin2013,particularlytoseniorleadersandmanagers.

• Importanceofcross-functioncollaborationtoimproveeffectiveness Inits30yearsofactivity,theIBEhaswitnessedanincreasingnumberofcompaniessettingupinternaldepartmentsspecificallydedicatedtoethics.However,thissurveysuggeststhatthesefunctionsarenotexpectedtoshouldertheresponsibilityofrunninganethicsprogrammeontheirown.Collaborationwithotherkeydepartmentsandfunctionsarevitaltotheeffectiveimplementationofeachbuildingblockofanethicsprogramme.

38

39

Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurveyAppendix1

Appendix 1The IBE 9–Step Model for developing and embedding a code of business ethics

The launch of the code is just the beginning of the journey. Ongoing monitoring, training on its use and rewarding those who demonstrate ethical leadership are also required.

Test it Monitor it 7 9

To ensure your code is fit for purpose, it needs to be piloted with a cross-section of employees drawn from different locations and levels of employment.

The launch event of a new or revised code should be memorable, engage employees and raise their awareness of the importance of doing business ethically.

Launch it 8

Ensure that your organisation has articulated its core values. Ethical values in particular should form the basis of the code and guide employee decision-making through ethical dilemmas.

Articulate your core

(ethical) values

Core Series

Corporate values, ethics and culture are matters of governance. Without senior leadership endorsement, embedding a code of business ethics is unlikely to be effective.

Establish board level

support

✓

The drafting of the code should produce a document which is clear, inclusive and accessible. It should be principles-based and give guidance to staff, and detail who to ask when unsure of the right way forward.

Draft your code

6

CODE OF

ETHICS

Codes can be structured according to stakeholders, issues, values or in a ‘hybrid’ way. Each organisation will need to choose which model best suits its individual requirements.

Choose your approach

5 Find out what bothers people

4

It is important to find out what issues are of particular relevance to your employees and your sector, so copying the code of another organisation is not the way to proceed.

?

7✓

✓ET

HICS 1

3 2Understand your

context

At the outset, it is necessary to understand the catalyst for the code. Knowledge of this will help you create an appropriate framework to develop your code.

?“

!

revi

ew

regula

rly

to m

ain

tain

the c

ode’s

rele

vance

1

✔

39


Appendix 2Survey Questionnaire

PERSONAL INFORMATION

• Whatisyourname?

• Whichcompanydoyouworkfor?

• Whichorganisationinvitedyoutoparticipateinthisresearch?

o IBE–UK o Forética–Spain o CEA–France o Sodalitas–Italy

• Whatisyourjobtitle?

• Whatisyouremailaddress?

• Areyouindividuallyresponsibleforyourcompany’sethicsprogramme?[Yes/No]

• Howmanyyearsofexperiencedoyouhaveworkinginethics/compliance?

o Lessthanayear o 2-4years o 5-9years o 10+years

COMPANY INFORMATION

• Inwhichcountryisyourcompany’sheadquarter?

• Isyourcompanypubliclylisted?[Yes/No]

• Ifyourcompanyispubliclylisted,onwhichindex(es)?(Tickallthatapply)

o UKFTSE100 o UKFTSE250 o FranceCAC40 o Germany–Dax40 o Italy–FTSEMIB40 o Spain–IBEX35 o BoursedeLuxembourg o Other(pleasespecifybelow)

• Ifyourcompanyisnotpubliclylisted,whatisyourownershipstructure?

o Employeeowned o Privatelyowned o Familyowned o Partnership o Stateowned o Other(pleasespecifybelow)

• Howmanyemployeesdoesyourcompanyhaveglobally?

o Lessthan100 o 101-500 o 501-1,000 o 1,001–10,000 o 10,001–100,000 o Morethan100,000

• Whichprimarysectordoesyourcompany operatein?

1. YOUR COMPANY’S ETHICS PROGRAMME

• Doesyourcompanyhaveanethicsprogramme(i.e.processes,policiesandtoolsforensuringthatitoperatesinaccordancewithitsvalues)?

• [Yes/No]–ifyescontinue,ifnojumptoCORE VALUES

• Doesyourprogrammeincludeanyorallthefollowing?(Tickallthatapply)

o Aglobalcodeofethics(orequivalentdocument) o Employeetrainingonethics o Amanagementlevelethicscommittee o Aspeakup(whistleblowing)line

o Anetworkof‘ethicsambassadors’(orequivalent) o Externalstakeholderengagement o Internalreportingonethicsperformance o Anethicsmonitoringprogramme o Externalreportingonethicsperformance o Aboardlevelcommittee o Other(pleasespecify)

• WhatarecurrentlytheTHREEmainprioritiesforyourethicsprogramme?

continues

40

continued

• WhatTHREEthingscurrentlyoccupymostofyourtime?

• WhichTHREEoftheissuesbelowareyoucurrentlymostconcernedaboutinyourcompany? (TickamaximumofTHREE)

o Briberyandcorruption o Discrimination,harassmentorbullying o Safetyandsecurityintheworkplace o Humanrights o Supplychain/sourcing o Taxpolicy o Environmentalresponsibility o Managingconflictofinterest o Speakingup/whistleblowing o Responsiblemarketing/advertisingpractices o Work-homebalanceforemployees o Executiveremunerationpolicies o Exploitativelabour&modernslavery o Productdevelopment o Useofsocialmedia o Useofbigdata o Other(pleasespecify)

• Whatwasthelastsignificantchangeyoumadetoyourethicsandcomplianceprogrammeandwhy?

• Whichdepartmentorfunctionhasprimaryresponsibilityforimplementingyourcompany’sethicsprogramme?

o Legal o Ethics(asanindependentfunction) o Compliance o Ethicsandcompliance(asajointfunction) o CSR/CR/sustainability o HR o Internalaudit/finance o Corporate/externalaffairs o Other(pleasespecify)

• Whatisthereportinglineforyourcompany’sethicsdepartment?(e.g.doyoureporttotheCEO,CompanySecretary,GeneralCounsel,HeadofLegal,etc.)

• Howdoestheboardofyourcompanytakeresponsibilityfortheethicsprogramme?

o Throughanominatedindividual o Throughadedicatedcommittee o Collectively o Theydon’ttakeresponsibilityfortheethics

programme o Notapplicable

• Isethics,valuesandculturearegularagendaiteminfullboardmeetings?[Yes/No]

• Ifyes,howfrequentlyarethesemattersdiscussed?(e.g.ineveryboardmeeting,onceayear,etc.)

• Howmanypeopledoyouhavededicatedtoethicsinyourorganisation?(Excludingethicsambassadorsorequivalent)

o Full-timeemployeeheadcount o Part-timeemployeeheadcount

• Doesyourapproachtomanagingethicsincludeanetworkofethicsambassadors(orequivalent)? [Yes/No]

• Ifyes,whatdoyoucalltheminyourcompanyandhowmanydoyouhave?

• Inthelastthreeyears,hasfinancialinvestmentinyourcompany’sethicsprogramme...

o Increased o Stayedthesame

• Whichprimarysectordoesyourcompanyoperatein?

2. CORE VALUES

• Hasyourcompanymadeitscorevaluesexplicit?[Yes/No]–ifyescontinue,ifnojumptoCODE OF ETHICS

• Whatarethevaluesofyourcompany(pleaselistbelow)

• Havethesevalueseverbeenrefreshed?[Yes/No]


41


3. CODES OF ETHICS (OR EQUIVALENT)

• Doesyourcompanyhaveacodeofethics(orequivalentdocument)?[Yes/No]–ifyescontinue,ifnojumptoCOMMUNICATION AND ENGAGEMENT

• Whatarethemainpurposesofyourcode?(TickamaximumofTHREE)

o Apubliccommitmenttoethicalstandards o Providingguidancetocontractorsandother

businesspartners o Guardingreputation o Reducingoperationalrisk o Helpingtosecurelong-termshareholdervalue o Creatingasharedandconsistentcompany

culture o Decreasingliabilityinthecaseofmisconduct o Improvingthecompany’scompetitiveposition o Providingguidancetostaff o Other(pleasespecify)

• HowdoesyourcompanycommunicatetheexistenceofthecodetoEMPLOYEES? (Tickallthatapply)

o Postedonthecompanyintranet o Includedaspartofstaffmanual/handbook o Producedasastandaloneguide/booklet o Throughinternalsocialmedia o Discussionininternalnewsletters o Codespecifictraining o Manager-ledteamdiscussions o Includedaspartoftheinductionfornewjoiners o Other(pleasespecify)

• Isthecodepubliclyavailableorisitaninternaldocument?

o Itispubliclyavailable o Itisaninternaldocument

• Howlonghasyourcompanyhadacode? o Lessthan1year o 2-4years o 5-9years o 10+years

• Whenwasthelasttimethecodewasupdated? o Lessthan1yearago o 2-4yearsago o 5-9yearsago o 10+yearsago o Ourcodehasneverbeenupdated o Other(pleasespecify)

• Whatformat(s)doesyourcodetake? (Tickallthatapply)

o Hardcopy/booklet o PDF o Website o App o Other(pleasespecify)

• Isyourcodeinteractiveinanyway?[Yes/No]

• Ifyes,pleaseexplainthewaysinwhichyourcodeisinteractive

• Whathaveyoufoundtobethemosteffectivewayofembeddingyourcodethroughoutyourorganisation?

• Areemployeesrequiredtosignagainstthecodeonanannualbasis?

o Theboard[Yes/No] o Theexecutiveteam[Yes/No] o Managers,supervisors[Yes/No] o Otheremployees[Yes/No] o Businesspartners[Yes/No]

• Isconformitytoyourcodeincludedincontractsofemploymentbyyourcompany?[Yes/No]

• Hasabreachofyourcodeledtoanyemployeedismissalsinthelastthreeyears?[Yes/No]

4. COMMUNICATION AND ENGAGEMENT

• Doesyourcompanyhaveacommunicationsstrategywhenitcomestointernalmessagesaboutethics,valuesandculture? [Yes/No]

• Whatmessagesarebeingcommunicatedregardingethicsinyourorganisation?

• Howdoyoucommunicatethesemessagestoemployees?(Tickallthatapply)

o Face-to-face o Inprint o Electronically o Intheworkplace(i.e.posters,etc.) o ‘TownHall’stylemeetings o Companyconferences o Other(pleasespecify)

continues

42

continued

• Whoisresponsibleforthesecommunications? o Theethicsfunction o Ethicsworkingwithinternalcommunications o Anexternalagency o Other(pleasespecify)

• WhatinformationdoyoureportonregardingethicstothefollowingEMPLOYEEgroups? (Tickallthatapply)

o Pleasespecifyifthereareanyotheremployeegroupswithwhichyoucommunicate?Oranyotherinformationyousharewiththem

• Whichofyourcommunicationinitiativeshavecreatedthemostimpactamongstyouremployees?

• Haveyoutriedanythingthatreallydidn’twork? (Ifso,what?)

5. ETHICS TRAINING

• Doesyourcompanyoffersometrainingonethics?[Yes/No]–ifyescontinue,ifnojumptoLEADErshIp, sUppOrTIvE ENvIrONMENT AND spEAk Up

• Isyourethicstrainingincorporatedintoothertrainingstreams,ordoesitstandalone?

o Weprovidededicated/standaloneethicstraining o Ourethicstrainingisincorporatedintoother

employeetraining

• Isthetrainingmandatoryorvoluntaryforthefollowingemployeegroups?

o Theboard[mandatory/voluntary] o Theexecutiveteam[mandatory/voluntary] o Managers,supervisors,etc.[mandatory/voluntary] o Otheremployees[mandatory/voluntary] o Businesspartners[mandatory/voluntary]

• Doestheinductionprocessincludetrainingonethicsforthefollowinggroups?

o Theboard[Yes/No] o Theexecutiveteam[Yes/No] o Managers,supervisors,etc.[Yes/No] o Otheremployees[Yes/No] o Businesspartners[Yes/No]

• Howfrequentlydoyoudeliverethicstrainingtothefollowingemployeegroups?(Tickallthatapply)

• Whichmethoddoyouuseforthemajorityofyourtraining?

o Face-to-face o Online o Bothusedequally o Other(pleasespecify)

• Whattrainingtoolsareused?(Tickallthatapply) o Gamesdilemmas/scenarios o Multimedia(e.g.videos) o Apps o Other(pleasespecify)

• Whoconductsthetraining? o Theethicsfunction o Otherinternaldepartment(pleasespecify) o Localmanagers o Anexternalspecialist

• Whichinternaldepartmentconductstheethicstraining?

• Whatarethemaintopicsoffocusforyourethicstraining?

• Howlongdoestrainingtypicallylast? o Lessthananhour o Onehour o Twohours o Halfday o Fullday o Morethanoneday o Other(pleasespecify)

• Doyouhaveanytrainingtechniquesorresourcesthatyouhavefoundtobeparticularlyvaluable?


43

6. LEADERSHIP, SUPPORTIVE ENVIRONMENT AND SPEAK UP

• Inyouropinion,doesyourcompanyhaveasupportiveenvironmentforethics?[Yes/No]

• HowwouldyouratetheengagementofyourSENIORLEADERSHIPwithethics?

o 1-Extremelydisengaged o 2-Verydisengaged o 3-Somewhatdisengaged o 4-Neitherengagednordisengaged o 5-Somewhatengaged o 6-Veryengaged o 7-Extremelyengaged

• HowwouldyouratetheengagementofyourOVERALLWORKFORCEwithethics?

o 1-Extremelydisengaged o 2-Verydisengaged o 3-Somewhatdisengaged o 4-Neitherengagednordisengaged o 5-Somewhatengaged o 6-Veryengaged o 7-Extremelyengaged

• Isthereaformalmechanismforemployeestoraiseethicalconcerns/askquestionsconfidentially?(i.e.aspeakup/whistleblowingsystem)[Yes/No]–ifyescontinue,ifnojumptorIsk AssEssMENT, MONITOrING AND ACCOUNTABILITY

• Doyourspeakuparrangementsincludeahelpline/hotline/adviceline?[Yes/No]

• Doesyoursystemallowconcernstoberaisedanonymously?[Yes/No]

• Approximatelywhatpercentageofcontactsdoeseachofthefollowingchannelsaccountfor?

o Phoneo Emailo Onlinereportingo Inpersono Otherchannels

• Doesyourcompanyhaveanon-retaliationpolicytoprotectthosewhoraisetheirconcerns?[Yes/No]

• Doyouhaveaformalisedapproachtomonitoringwhethertherehasbeenanyretaliationagainstthosewhohaveraisedtheirconcerns?[Yes/No]

• Ifyes,howdoyouensurenon-retaliationagainstthosewhohaveraisedtheirconcerns?

7. RISK ASSESSMENT, MONITORING AND ACCOUNTABILITY

• Doesyourcompanymonitortheeffectivenessofyourethicsprogramme?[Yes/No]]–ifyescontinue,ifnojumptoENGAGING WITh ThIrD pArTIEs

• Ifyes,doesthisincludeanethics/complianceriskassessment?[Yes/No]]–ifyescontinue,ifnojumpto‘Howdoyoumonitortheeffectiveness…’below

• Whatistheintendedpurposeofyourriskassessmentprocesses?

• Whatisthescopeofyourriskassessment?(issues,locations,etc.)

• Whodoestheriskassessment?

• Whoelsedoyoucollaboratewith(internallyandexternally)toprovideacomprehensiveassessmentofrisk?

• Howfrequentlydoyouconducttheriskassessment?

• Howdoyoumonitortheeffectivenessofyourethicsprogrammetoensurethatyourvaluesareembeddedthroughouttheorganisation?

(Tickallthatapply) o Byuseofinternalaudit o Questionsonethicalstandardsinstaffsurveys o Boardreports o Useofspeakupdata o Engagementwithexternalstakeholders o Percentageofemployeesreceivingethicstraining o Dedicatedethicssurveys o Codesignoffnumbers o Externalauditprocesses o Other(pleasespecify)

• DoyouhaveKPIsforethics?[Yes/No]

• Ifyes,whatareyourprimarymeasuresofsuccessofyourethicsprogramme?

• Doyouseekexternalassurancesofyourethicalperformanceortheeffectivenessoftheethicsprogramme?[Yes/No]

continues


44


45

• Ifyes,whichexternalbenchmarksorstandardsdoyouuse?(Tickallthatapply)

o InvestinginIntegrity(IiI) o GoodCorporationStandard o BITC(BusinessintheCommunity) o CRIndex o FTSE4GoodIndex o AA1000(accountabilitystandard) o BS10500(anti-briberystandard) o DowJonesSustainabilityIndex o (DJSI) o ISO26001 o UNGlobalCompact o Other(pleasespecify)

• Doesethicsplayapartinyourcompany’srecruitmentprocess?[Yes/No]

• Doperformanceappraisalsinyourcompanyincludereferencetoethicalbehaviour?

o Theboard[Yes/No] o Theexecutiveteam[Yes/No] o Managers,supervisors,etc.[Yes/No] o Otheremployees[Yes/No] o Businesspartners[Yes/No]

• Isethicalbehaviourincludedintheremunerationcriteriaofyourorganisation?

continued

8. ENGAGING THIRD PARTIES

• Areyouseekingtoengagethirdpartieswithyourorganisation’sethicsprogramme?[Yes/No]–ifyescontinue,ifnojumptotheend

• Ifyes,whodoyouincludeinyourdefinitionofthirdparties?

• HowdoesyourcompanycommunicatetheexistenceofitsCODEtoEXTERNALSTAKEHOLDERS?(Tickallthatapply)

o Directdistribution o Postedoncompanywebsite o Mentionedinannualreport o Mentionedincorporateresponsibility(orsimilar)

report o Discussioninnewsletters o Suppliertraining o Throughexternalsocialmedia o Other(pleasespecify)

• Apartfromemployees,whichothersdoyouasktoliveuptothestandardsofyourcode?(Tickallthatapply)

o Jointventures o Non-operatedjointventures o Businesspartners o Suppliers o Other(pleasespecify)

• Doesyourcompanyhaveaseparatesuppliercode?[Yes/No]

• Doyoudoduediligenceonsuppliersandotherbusinesspartnersforethicalstandards?[Yes/No]

• Cannon-employeesraisetheirconcernsthroughthespeakupsystem?[Yes/No]

• WhatinformationdoyoureportonregardingethicsEXTERNALLY?

o Theexistenceofthecode o Numberofdisciplinaryactionstakenagainstthe

code o Numberofspeakup(whistleblowing)contacts o Numberofspeakup(whistleblowing)contacts

leadingtodisciplinaryactions o Numberofsupplier/otherbusinesscontracts

terminatedforethicalreasons o Other(pleasespecify)


Related IBE Publications

IBEpublicationsprovidethoughtleadershipandpracticalguidancetothoseinvolvedindevelopingandpromotingbusinessethics,includingseniorbusinesspeople,corporategovernanceprofessionalsandethicsandcompliancepractitioners.Somerecentpublicationsrelatedtothistopicwhichyoumightbeinterestedininclude:

Codes of Business Ethics: a guide to developing and implementing an effective codeSimon Webley and Daniel Johnson

NewguidancefromtheIBEonhowtodevelopandimplementaneffectivecodeofethics.ThisCoreIBEReportaddressesmanyofthequestionsthatarisewhenorganisationswishtoprovidesupportandguidancetostaffinethicaldecision-making.Itisintendedtoapplytoorganisationsofanysize,regardlessofthesectorinwhichtheyoperateandwillassistthosechargedwithimplementingorupdatingtheirorganisation’scodeofethics.CodesofBusinessEthicsfollowstheIBE9–StepModelandsharesexamplesofgoodpractice.

Codes of Business Ethics: examples of good practiceSimon Webley and Guendalina Dondé

ThiscompanionpublicationtoCodes of Business Ethics: a guide to developing and implementing an effective codedrawsonthewordingofanumberofcurrentcorporatecodeswhichaddressthemostcommonconcernsencounteredindoingbusinesstoday.Therearepotentially108issueswhichcodesofethicscancover.Theseincludenewissues,suchaspersonalrelationshipsatwork;treatingcustomersfairly;socialmedia;protectionofthecompany’sbrand;riskmanagementandprioritisingethicsoverprofitswhichdidnotexistwhentheguidancewaslastupdatedin2003.

Culture by Committee: the pros and consPeter Montagnon

Shiftingperceptionsofriskhaveincreasinglyencouragedcompaniestoformspecialboardcommitteestodealwithbroadquestionsofcorporateresponsibility,sustainabilityandethics.ThisIBESurveyReportlooksatthenatureandroleoftheseboardcommittees,andalsoatthewaycompaniesthatchoosenottohavesuchcommitteeshandlethisgrowingrangeofnon-financialrisks.Theideaofhavingacommitteededicatedtothetaskofoverseeingcultureandethicsisrelativelynew.ThissurveyreportisintendedtobenchmarkwhatishappeningintheUK,providingavaluableinsightintohowcompaniesareapproachingthetask,andhelpingcompaniesdecideontherightapproachfortheminanincreasinglycomplexworld.ThissurveywaspreparedincollaborationwithICSA:TheGovernanceInstituteandMazars.

Core SeriesCore Series

Published by

Codes of Business Ethics a guide to developing and implementing an effective codeBy Simon Webley and Daniel Johnson

Core SeriesCore Series

Codes of Business Ethics examples of good practiceBy Simon Webley and Guendalina Dondé

Published by

4

SurveySurvey

Published by:

Culture by Committee the pros and consBy Peter Montagnon

In collaboration with:

IBE_ Boards & Culture_COV_SURVEY.indd 1 22/02/2016 16:44

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Other IBE Resources

Investing in Integrity Charter Mark

Isthereawaytoproveacompany’sintegrity?TheIBEhasdevelopedachartermarkinassociationwiththeCharteredInstituteofSecuritiesandInvestment(CISI)tohelpbusinessesandorganisationsknowiftheirethicsprogrammeisembeddedthroughouttheirorganisation.

The Investing in Integrity(IiI)chartermarkgivesanassuranceoftrustworthinesstoclients,customers,investorsandotherstakeholdersdoingbusinesswiththeorganisation.TherealstrengthoftheIiIframeworkisthatittestsanorganisation’sethicalconductagainstitsstatementsofvaluestoensurethosevaluesareproperlyembedded.Itcanhelpthemidentifywhetherornotthecompanyistrulylivinguptoitsvalues,fromtheboardroomtotheshopfloor.

ThetestingusesaselfassessmentmanagementquestionnaireandthirdpartyauditbyIiIpartnerGoodCorporationwhosemethodologyhasbeenadaptedfortheIiIchartermark.

Tofindoutmorevisitwww.investinginintegrity.org.uk

Say No Toolkit

TheIBESayNoToolkitisadecisionmakingtooltohelporganisationsencourageemployeestomaketherightdecisionindifficultsituations.TheSayNoToolkitdeliversimmediateguidancetoemployeesonawiderangeofcommonbusinessissues,especiallythosethatcouldleadtoaccusationsofbribery.

Employeestapthroughaseriesofquestionsaboutthesituationtheyfaceandthetoolwillprovidetherightdecisiontotake:SayNo,SayYesorAsk.Theansweralsomakesitclearwhyitisimportanttomakethatdecisionsoyouremployeescanhavetheconfidenceandtheknowledgetorespondcorrectly.

OrganisationscanuseboththeIBESayNoToolkitappandwebsiteforfree.Theappcanbedownloadedontoanysmartphoneortablet. Youcanstartusingitforfreenow.Simplygotowww.saynotoolkit.net TheSayNoToolkitcanbecustomisedandbrandedtosuityourorganisation’sneedsanddetailedprocedures.Formoreinformationemailinfo@ibe.org.ukorcalltheIBEofficeon+442077986040.

For details of all IBE publications and resources visit our website www.ibe.org.uk

47 Corporate Ethics Policies and Programmes: 2016UKandContinentalEuropeSurvey

www.investinginintegrity.org.uk

www.saynotoolkit.net

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Corporate Ethics Policies and Programmes2016UKandContinentalEuropeSurvey

How do organisations make sure that employees share their core values and feel empowered to do the right thing? How can ethics become an integral part of doing business?

Thistriennialsurvey,nowinitseighthedition,providesapictureofhowethicsisembeddedwithinlargeorganisationsthatoperateintheUKandContinentalEurope.

ItisbasedontheIBEBusinessEthicsFrameworktobuildanethicalcultureinbusiness.Byfollowingthismodel,organisationscaninfluencetheiremployees’behaviouranddecision-making,ensuringthattheyareshapedbythecompany’scorevalues.Thiswillhelpthemtoachieveandfulfiltheirpurpose,promotinglong-termsuccess.

ISBN 978-1-908534-27-9 Availableatwww.ibe.org.uk

Documents

Corporate Ethics Policies and Programmes 2016 UK … Ethics Policies and Programmes: 2016 UK and Continental Europe Survey Contents Page Author and Acknowledgements 2 IBE Foreword