By Henry Uche
Management and administrative experts have advocated strict sanctions for erring directors in both sectors. They made this known during the launch of Revised Code Of Ethics of Institute Of Directors (IoD) in Lagos, yesterday.
They stressed that corporate leaders must not betray the trust reposed on them by stakeholders of their companies rather as custodians of Public resources, they must delivered expected results most prudently.
Speaking at the launch, the CEO of Nigeria Stock Exchange, Oscar Onyema, represented by Executive Director; Regulation Division, Tinuade Awe, said corporate organizations must institutionalize their Codes of Ethics and ensure clear understanding and disclosure of information as and when due. He maintained that people must do the right things even when no one is watching, “It’s good to do good not really because of the consequences of doing the contrary but because it’s just good to do right things at all times.”
Meanwhile, the minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, gave thumbs- up to IoD, saying the Code serves as a moral compass for corporate administrators and managers, and to keep them on their toes. “Everything rise and fall on leadership, so we expect moral sanity among corporate leaders” he charged.
More so, the chairman, Polaris Bank, Mohammad Ahmad, added that some public officers misbehave for some unfounded reasons but such should stop forthwith. “It is a culture in some settings to commit malfeasance, some out of vested interest and convenience, but this must stop.
He urged IoD to work hand -in- glove with the federal and state government for private sector adoption of this Code in order to influence behavior. “Code Of Ethics is doing the right thing at the right time and place with the right people with focus and right manner to get the right results” he posited.
Also, chairman, ICPC, Bolaji Owasanoye, put that enforcement of sanctions is paramount no matter who is involved in any malfeasance. “Public officers who errs must face administrative sanctions or otherwise as the case may be, don’t forget impunity soars when corrupt persons go Scot free” he asseverated.
In his address, the President & Chairman of Governing Council of the Institute, Chris O. OKunowo, F.IoD who spoke on the theme: “Doing Good Is Good Business: The Ethics Dimension”, said IoD would continue to advocate best practices and standards in governance both public and private sector.
The president of the institute urge members of the Institute to be role models and standards in ethical practices as the key mandates of the Institute is to sustain standards, values, ethics, best traditions and continuous improvement in the capacities of Directors to fulfil their roles of delivering value to all stakeholders.
The corporate leader maintained that, the commitment of IoD to high ethical standards has continued to drive its role in promoting Corporate Governance and Good Business Ethics in Nigeria, saying that IoD has kept the faith by establishing sets of rules, regulations and expectations, which were embedded in our ethical codes for members since the inception of the Institute.
OKunowo said, “The Code we launch today is IoD Nigeria’s commitment to maintaining our position as the leading professional body for Directors in Nigeria while ensuring that our members and staffs adhere strictly to the principles of Good Ethics and Governance in their respective endeavors. It will serve as a guide for all Institute’s members and personnel in the practice of sound business ethics and principles focusing on current realities and current challenges faced by Directors in their roles,”
He noted that IoD Nigeria Code of Ethics will standardize the practice of sound ethical values and principles among Members and staff of IoD Nigeria and induce voluntary compliance with the higher ethical standards and better position the Institute to monitor the conduct of its members and employees.
“It is also the aspiration of the Institute that IoD Code of Ethics will serve as a guide for other stakeholders on Ethics. Therefore, the Code, amongst others, addresses and guides a number of issues for our members such as whistleblowing framework, a Conflict of Interest policy and a gift and hospitality policy. In our over two years research work on this Code, the Institute has provided illustrative ethics examples and case studies to showcase the impact and effects on institutions with poor governance practices and ethics and the positive impact and business benefits of good ethical practices,”
He posited that IoD Nigeria Code of Ethics 2020 sets out clearly the values and principles that should guide organizations and directors in order to increase public confidence in Boards of directors, ensuring sustainability, and creating wealth for the benefit of business and the society as a whole.
“As a manifestation of our commitment to good corporate governance, best practice and Ethics, we will ensure that our members who are directors of Institutions, subscribe to the tenets of this aspirational code, and ensure that as leaders, they are properly enabled and guided in their conduct and behavior in their personal and business endeavors.
“I encourage all of us to, after the launch of this Code, get copies and remain committed to the outlined principles of good ethical practices. The change we expect and envision in Nigeria starts from all of us as corporate and public leaders.
“Our Institute has provided what I would refer to as an easy way to comply with sound and best ethical practices through this Code. There would no longer be any tenable excuse of ignorance or lack of knowledge about what to do and how to behave when confronted with ethical challenges” he assured.
In a remark, the chairman, Ethics Committee, IoD Nigeria, Amina Oyagbola, F.IoD, averred that the role of members of the Institute of Directors as leaders at the apex of organizations in the public and private sector remains critical.
The committee chairman attested research has shown that ethical leadership and indeed the ethics dimension (in terms of ethical behaviour and culture) are crucial to the effective operations of boards and the sustainable performance of organizations.
Oyagbola noted, “In the light of the above, recent Corporate failures, Corporate fines of some blue chip organizations and the gross mismanagement of some of our Public Institutions, the theme of today’s launch: “Doing good is good business; the ethics dimension” could not be more apt and relevant.
“It is clear that legal reforms without proper attention to ethical obligations and the attendant monitoring and enforcement mechanisms is unlikely to achieve the desired impact and Behaviorial change that we would like to see in Nigeria.
“Directors have the overall responsibility for the ethics and compliance programs of their various organizations. The tone they set at the top; manifested in their policies, decisions and actions in the Boardroom and on executive committees drives the ethical culture in their respective organizations. They have a fiduciary responsibility and are in position of trust and should serve a exemplars and role models,”
She added that, IoD Code of Ethics 2020 consists of a set of principles aimed at improving and guiding the governance practices of organizations in Nigeria. noting that it makes references to Ethics and Governance Codes locally and from other jurisdictions. “It is worthy to note that the Code is not intended to be an exhaustive statement and should therefore be read in conjunction with applicable laws, any relevant rules, regulations, best practices and the Nigerian Code of Corporate Governance 2018. It provides guidance on topical ethics issues such as conflict of interest, gifts and hospitality and whistleblowing.
“Even though the IoD Code of Ethics 2020 has been developed with the intention to guide and foster ethical behavior for our members of the Institute who are directors on boards, it is an aspirational Code and therefore applicable in general to all other institutions, government bodies and entities that would like to enshrine good corporate governance and business ethics. We hope it will be embraced as a framework, standard and guide that is adapted to suit the specific needs of any organization” she proclaimed.