By Blandine CORDIER-PALASSE, La Revue RH&M n°84
When we talk about CSR (Corporate Social Responsibility) or sustainable development, we immediately think of environmental and social issues. Yet governance is just as fundamental, because without it, there can be no sustainably successful company. Examples abound, from Enron in 2001 to Wirecard in 2020. Good governance includes a robust compliance and ethics programme. Since the start of 2021, we have seen a sharp increase in recruitment assignments for ethics and compliance managers. We therefore think that an update on this function would be welcome.
What is the role of an Ethics Director?
For a better understanding, let's compare compliance and ethics. Being compliant means ensuring that the company's rules, procedures and protocols are well defined, applied and monitored. Guiding principles have helped shape ethics. The company's values are the pillars of these principles. They help us to make decisions and guide the way we do business. In short, one is the spirit, the other the letter. And without one or the other, the company will not be effectively protected in the long term.
The Director of Ethics increasingly reports to the CEO. His role is to ensure that all employees are aware of these principles. These principles must be accepted and applied in the conduct of business and the development of the company's activities. As spokesperson, advisor and controller, he or she must also anticipate changes in society. The aim is to help the company choose the right course in an increasingly complex business environment.
What is the scope of activity of an Ethics Director?
Above all, the Director of Ethics has a cross-functional role. The projects to be managed and deployed, in cooperation with the functional and/or operational teams, are many and varied and are organised around four axes:
1. Define the principles and behaviour expected. This can take the form of an Ethics Charter. Principles can then be added to it.
2. Disseminate and promote these principles. Training and events using educational methods, dialogue and listening will help to ensure that they are assimilated and adopted.
3. Ensuring they are implemented through control programmes. Measuring the effectiveness of procedures and identifying, correcting or penalising deviations.
4. Advising, informing and even alerting management bodies - with the corollary of day-to-day knowledge of the Group's business, the introduction of performance indicators and 'ethical' monitoring.
Why is this essential in 2021?
There are many reasons for this, all of which converge on one objective: to protect the company without hindering its development. More specifically, for HR Directors and Managers, the positive impact on the employer brand will be an asset in attracting and retaining talent. It will also be an asset for strengthening your group's cultural identity and your employees' sense of belonging. For your sales staff, it will be a differentiating factor and a reassuring argument when dealing with customers. For everyone, ethics is a means of identifying and controlling risks.
That's why so many company directors contact us to help them create the post of Director of Ethics. A well-defined, well-recruited and well-integrated new role will create value over the long term.
