What responsibility does the Board of Directors have regarding the Code of Ethics?

The responsibility of the Board of Directors regarding the Code of Ethics primarily revolves around overseeing and ensuring that the organization adheres to ethical standards. By overseeing employee compliance with the Code, the Board plays a crucial role in fostering an ethical culture within the organization. This oversight includes implementing necessary policies, procedures, and support systems that empower employees to act ethically and report unethical behavior.

Additionally, the Board's involvement in compliance ensures that there are mechanisms in place for monitoring ethical behavior and addressing issues as they arise. This leadership in ethical governance is essential for instilling confidence among stakeholders and maintaining the organization's integrity. It signifies that the Board prioritizes ethical conduct as a fundamental part of the business operations and culture.

This responsibility is critical, especially in today’s corporate environment, where ethical lapses can lead to severe reputational damage, financial losses, and potential legal consequences. The Board's active engagement in ethics reaffirms its commitment to corporate social responsibility and upholding a strong ethical framework within the organization.