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HSRC Annual Report 2016/17
Ethical
Leadership
Good corporate governance is essentially about effective ethical leadership. While leadership starts with each individual
director, it finds its expression through the Board as a collective setting the appropriate example and tone which is
referred to as ethical governance. King IV, which comes into force in 2017/18, explains the governance of ethics as the
role of the Board in ensuring that the ethical culture within the organisation is aligned to the tone set by the Board
through the implementation of appropriate policies and practices.
King IV specifically introduces the need for the Board to oversee that ethics is monitored and assessed for whether it
is successful in establishing ethical norms, and to make the required public disclosures in this regard. It also asks of the
Board to oversee that there is consequence management for non-adherence to, or contraventions of ethics standards
and proposes disclosure of effective ethics management and the outcomes thereof.
Specifically, King IV requires that the Board ensures that the relevant codes of conduct and policies are incorporated
(by reference or otherwise) in supply and employee contracts. In essence, this should result in a situation where all
employees and suppliers agree contractually to adhere to the ethics and values of the company.
The HSRC abides by a set of values that underpin ethical behaviour across the organisation. These are:
•
Professional excellence;
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Respect;
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Non-partisanship and independence;
•
Fairness that builds trust;
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Non-discrimination;
•
Collaboration; and
•
Honesty and integrity.
The fundamental objective has always been to carry out all aspects of the HSRC’s work ethically, while building a
sustainable organisation that recognises the short- and long-term effects of its activities on the economy, society, and
the environment.
Corporate ethics
The Fraud Prevention and Anti-Corruption Strategy, which forms part of the risk management process, has been
approved by the Board to provide a framework for the management of ethics risks across the HSRC. In addition, it makes
provision for protected disclosure of corrupt activities, such as theft, fraud, dishonesty, harassment, or any other unethical
behaviour through the Ethics Hotline, including Research Ethics (0800 212 123) and the Fraud Hotline (0800 205 138).
The HSRC has prioritised the management of conflict of interest risks in its research and day-to-day business activities,
as the financial conflict of interest (FCOI) regulation requires it to maintain and enforce an appropriate written policy
on conflict of interest. In this regard, regular awareness sessions are held to educate all staff and researchers on FCOI.
The Chief Risk Officer has been entrusted with the responsibility to facilitate management of conflict of interest risks by
ensuring that Board members and all HSRC employees declare their business interests annually, and as and when they
acquire new interests during the course of the year.
PART C: Governance