SUMMARY

Integrity policy and the adequate management of the risk of integrity violations are of strategic importance to every organisation, regardless of whether it operates in the private or semi-public/public domain.

The importance of integrity policy and managing integrity risks

Companies that recognise the importance of integrity and take appropriate measures perform better, enjoy greater trust among customers, investors, employees and the public, and have a better reputation in the labour market. An organisation’s involvement in an integrity violation can lead to the resignation of management board members or supervisory directors, and may even jeopardise the organisation’s continuity.

Internal supervisors, such as supervisory directors and members of a Supervisory Board or Advisory Board, have important duties and responsibilities in this area. These are laid down in national and international legislation and regulations, as well as in general and sector-specific codes. Ideally, organisations will have translated these duties and responsibilities into internal regulations, processes and procedures, which together form the organisation’s integrity policy. They are also cultivating a culture where employees and managers feel safe to speak up, where dissent is welcomed, people listen to one another and actual or suspected integrity violations can be reported safely. All of this is essential to conducting business based on integrity. However, it is not always clear what is expected of supervisory directors specifically. Nor is it naturally the case that supervisory directors are able to

shape integrity oversight and deal with practical challenges. This brochure helps supervisory directors become more aware of their role and responsibilities in integrity oversight. Above all, we want to offer supervisory directors practical tools.

Key takeaways

In essence, we consider it important for you, as a supervisory director, that:

  1. You understand your duties and responsibilities to act with integrity within and by the organisation.  You fully recognise the impact you and the management board members have as role models. Being a role model calls for moral leadership and a proactive approach.
  2. You have a clear picture of the main integrity risks facing the organisation you supervise. Naturally, this  includes knowing how to manage these risks.
  3. You are familiar with the code of conduct, whether organisation-specific or sector-wide. Furthermore, you are up-to-date on the regulations, processes and procedures that together form your organisation’s integrity policy, including the reporting procedure and your own role in this regard.
  4. You have insight into the organisational culture and the extent to which that culture supports integrity-based conduct by management board members and employees.
  5. The Supervisory Board places integrity on the agenda regularly, particularly during critical decisions and at least once a year.