David Simon Outlines Essential Practices for Institutionalizing Ethics and Compliance in Corporate Governance

Foley & Lardner LLP partner David Simon shares valuable insights for how business leaders can create and maintain an ethical culture in his NACD Directorship article, “Five Practices to Institutionalize Ethics, Integrity, and Compliance.”

“While ethical leadership is necessary, it is not sufficient,” Simon writes. “It must be paired with an ethical infrastructure.”

Drawing on real world experience advising companies and presenting to leading boards, Simon offers five actionable practices that go beyond policy statements to shape ethical infrastructure:

• Align Incentives with Ethical Behavior
• Independently Oversee Key Decisions
• Ensure Companies Deliver Effective Ethics Messaging
• Foster a “Speak-Up” Culture
• Deploy Emerging Technologies to Detect Ethical Risks

“Boards that embrace these five governance practices will help build resilient, high-trust organizations where ethics, integrity, and business performance go hand in hand,” Simon concludes. “A solid ethical infrastructure, combined with effective ethical leadership, protects an organization from scandal and legal and regulatory jeopardy.”

(Subscription required)