Moving to a Values-Based Approach to Corporate Codes of Conduct

In the article for Directors & Boards titled “Moving to a Values-Based Approach to Corporate Codes of Conduct,” corporate partner Doug Raymond suggests that, in light of current trends, boards should consider revisiting their approach to codes of conduct.

Raymond discusses how the debate over the proper role of stakeholder versus shareholder interests, Environmental, Social, and Governance (ESG) matters, and criticisms of corporate inaction in the face of the many challenges faced by the nation in the past year have encouraged boards to consider whether their company’s stated code of conduct aligns with the core values of the corporation.

Raymond highlights that moving from a rules-based code of conduct to a values-based approach can encourage and reinforce behaviors and a culture that reflect the role a company seeks to play in society, and not just as an aid to defending lawsuits.