Code of Ethics Examples

Does your company’s board have a code of ethics? Here are some basic things any major company should consider:

• treat all customers in an ethical manner
• obey the law
• promote a positive work environment
• keep accurate and complete records
• follow the law in political contributions and activities
• avoid illegal and questionable gifts or favors
• steer clear of conflicts of interest
• do not engage in insider trading

[via Theodore F. di Stefano]

Major Responsiblities for Board of Directors

BoardSource, in their booklet “Ten Basic Responsibilities of Nonprofit Boards”, itemize the following 10 responsibilities for nonprofit boards. (However, these responsibilities are also arelevant to for-profit boards.)

1. Determine the Organization’s Mission and Purpose

2. Select the Executive

3. Support the Executive and Review His or Her Performance

4. Ensure Effective Organizational Planning

5. Ensure Adequate Resources

6. Manage Resources Effectively

7. Determine and Monitor the Organization’s Programs and Services

8. Enhance the Organization’s Public Image

9. Serve as a Court of Appeal

10. Assess Its Own Performance

SOX Code of Ethics – Ignored by more than 25%

John Bace, VP of Research at Gartner, reported that only 83% of companies had met the “letter” of the SOX requirement of establishing a code of ethics; but 25% of those companies say they won’t enforce those standards.