Half (46%) of the UK’s biggest 350 listed companies have no publicly available codes of ethics. And of the 54% that do, just 58% contain a commitment to protect staff who raise concerns over ethical behaviour and business practice.
Other findings from research into FTSE 100 and 250 companies by the Institute of Business Ethics (IBE) are as follows.
While 90% of FTSE 100 companies have a publicly available code – championed by the IBE for enabling public scrutiny and engaging all stakeholders, including investors – only 40% of FTSE 250 companies do.
With ethics codes updated or issued in the past three years more likely than older or undated codes to be rated as of good quality, the IBE recommends version-dating codes and reviewing them at least once every three years. However:
Only 58% of the 189 publicly available codes among FTSE 350 companies have an explicit commitment to non-retaliation against whistleblowers.
‘The biggest firms get the importance of a code of ethics, but there is substantial room for improvement,’ says IBE director Ian Peters. ‘Too many fail to include protections for staff who feel they need to raise concerns.’
Review tips
When reviewing a code of ethics, it’s a good idea to shift the focus away from rules and policies and move towards a values-led approach that guides employees when there isn’t a simple answer. Other IBE ethics code recommendations include:
- Avoid legalistic language.
- Use language to engage, eg ‘we will’ rather than ‘you must’.
- Use good design to make the content manageable and easy to navigate.
- Consider putting interactive or engagement-supporting content in the code, not just PDFs.
- Include images to make it relatable and to draw attention to the most important points.
