Ethics Risk Management
It is recommended that an Ethics Risk Assessment be undertaken as the starting point for developing an ethical business culture. The Ethics Risk Assessment also enables organisations to develop or review their Code of Ethics as well as auditing their current compliance with key legislation.
An Ethics Risk Assessment is a planned and structured process and seeks to:
- Identify the organisation’s key ethics risks and opportunities
- Provide structured time to reflect on the organisation’s business culture and behaviour
- Engage with all stakeholders including the supply chain
- Identify the gap between the actual state of Ethics and the desired position
Ethics Risk Assessments and Audits are increasingly required by regulators and the law to show due diligence. It is an offence under The UK Bribery Act for a commercial organisation to prevent bribery by an associated person; that is someone who performs services for or on behalf of an organisation and may include employees, agents, consultants, joint-venture partners or subsidiaries. The US Foreign Corrupt Practices Act requires companies to maintain proper books and records. The Bank of Mauritius Corporate Governance Guideline requires amongst other things, that a policy is put in place that encourages employees to freely communicate concerns about illegal, unethical or questionable practices to the board or committee thereof or to senior management, without fear of reprisal.
How does your company know if it is adhering to best ethical practices?
Every ethics risk assessment is tailored for the needs of the individual organisation and uses a mix of qualitative and quantitative assessment instruments to identify the ethics risks and opportunities which make up the organisational ethics risk profile.
The Ethics Risk Assessment will cover:
Beliefs - Embedded cultural standards and norms of behaviour
Questions that address the attitudes regarding the organisations values and how they relate to daily work and operations. Even employees with strong personal values are less inclined to take action to “do the right thing” if that is not part of the organisational culture.
Communications - Unrestricted and fear free, downward, upward, and lateral communications
Questions that address the perceptions of how well managers create an environment that encourages open discussion of issues, as well as how well they respond to issues when they arise.
Leadership - Belief that leaders can always be trusted to do the right thing
Questions that address perceptions of how well managers set the right tone at the top and act consistently with the organisation’s values and policies.
Equity - Perceptions of justice, fairness, and consistency
Questions addressing the perceptions of how well the company treats all of its stakeholders, both internal and external.
Awareness - Education that goes beyond merely informing people of the rules
Questions addressing perceptions of how well they understand what is expected of them and how ethical behaviour relates to their job and the organisation’s business goals.
Rules and Regulations - Governance, formal systems and processes that support ethical conduct
Questions addressing attitudes towards the rules and regulations and whether they are effective in guiding behaviour.
After the Ethics Risk Assessment, you will receive a comprehensive report that will include findings and recommendations.
For more information, contact the MIoD on Tel: 4681015