Henry Uche
The Institute of Directors (IoD Nigeria) has affirmed that the entrenchment of a sound corporate governance code remains the panacea to corporate administration crisis both in the private and public sector.
Speaking at a press conference Webinar on Thursday, IoD President/Chairman Chris OKunowo, F.IoD, said that a number of malfeasances both in the private and public sector would have been reduced or halted in toto if corporate organisations had institutionalised and enforced a code of ethical practices like that the IoD’s Code of Ethics.
The President of the institute maintained that unethical behaviour by directors of institutions in both public and private sectors regarding finance is as a result of a weak corporate governance code and the lackadaisical attitude of those on whose shoulders rest the onus to enforce compliance when and when necessary.
According to him, the IoD would continue to spread the gospel of sound corporate governance in both the private and public sectors of the Nigerian economy. He noted that the Code of Ethics will serve as a guide for Institute members in various organisations and its personnel on the practice of sound business ethics and principles.
Okunowo stressed the need for corporate leaders in management and administration to imbibe the culture of pursuing legacies which will speak to their achievements after vacating strategic positions.
‘As we look forward to the formal launch and unveiling of the IoD Nigeria Code of Ethics for Members and Staff of the Institute, holding, as a Hybrid Virtual Event, on Thursday, 6th August, with the theme “Doing Good is Good Business, the Ethics Dimension’, we must not leave any stone unturned in maintaining our mandates of sustaining standards, values, ethics, best traditions and continuously improve the capacities of Directors to fulfil their roles of delivering value to all stakeholders.
‘The Code, therefore, is IoD Nigeria’s commitment to maintaining its position as the leading professional body for Directors in Nigeria while ensuring that our members adhere strictly to the principles of Good Ethics and Governance in their endeavours. Our future depends on organisations being run honestly, responsibly and managed effectively for long-term prosperity and sustainability. We will, therefore, appreciate it.
‘Our Code of Ethics is intended to standardise the practice of sound ethical values, better position the Institute to monitor the conduct of its members and employees. It is also the aspiration of the Institute that the IoD Code of Ethics will serve as a guide for other stakeholders on ethics.’
He added that the Code, amongst other implications, would address and guide a number of issues for its members such as whistleblowing framework, conflict of Interest policy and hospitality policy. It also provides illustrative ethics examples and case studies to showcase the impact and effects on institutions of poor governance practices and ethics as well as the positive impact and business benefits of good ethical practices on organisations to inspire good practice.
‘As an institute with a focus on quality corporate governance, best practice and ethics, we are committed to ensuring 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 behaviour in their personal and business endeavours. The IoD Nigeria Code of Ethics 2020 sets out clearly the values and principles that should guide organisations and Directors in order to increase public confidence in Boards of Directors, ensuring sustainability and creating wealth for the benefit of the business and the society in general.’
In a remark, the Chairman, Ethics Committee, IOD Code Of Ethics, Amina Oyagbola, F.IoD, said since the roles of Corporate Directors as indispensable, the Revised Code of Ethics 2020 is apt to remind them of their obligations, duties and liabilities (legal, ethical and commercial).
The chairman said that the tone directors set at the top undoubtedly influence the culture of organisations holistically, noting that by adhering to the values and principles set out in the IoD Code of Ethics, Directors will increase general confidence in Board Of Directors positively and Nigeria economy. It is important to note that this Code of Ethics is not intended to be an exhaustive statement.
She encouraged members to embrace sound business ethics and good corporate governance in line with the values of the Institute and its motto of “Integrity and Enterprise”.
‘The Code of Ethics consists of a set of principles aimed at improving and guiding governance practices of organisations in Nigeria. Members of IoD Nigeria are Directors and corporate leaders drawn from the apex of different organisations.
‘It is important to note that this Code of Ethics is not intended to be an exhaustive statement, but should be read best in conjunction with applicable practices and Codes of Governance such; as The Nigerian Code of Corporate Governance 2018, the Companies and Allied Matters Act Cap C20 LFN 2004 (CAMA) as (amended) and the provisions of the company’s constitution and internal policies.
‘The design and tone of the Code is not just aspirational but directional with some general ethical values, principles and standards in line with Best Practice. The aspiration is for IoD Code of Ethics to become a standard that all other institutions, government bodies, companies and other entities will look up to as a reference document or guide to formulate their Codes of Ethics or Business Conduct in line with its ethos to be the leading voice on Corporate Governance and business ethics in Nigeria,’ she asserted.