The Board Defines and Approves a Code of Conduct for the Directors and the CEO

When a board of directors articulates its expectations of directors by establishing a Directors’ Code of Conduct, three positive outcomes follow.

1. First, directors are not subsequently surprised by the requirements of their position because they have been advised in advance of what is expected of them. 
2. Second, directors can be held accountable for their volunteer performance. 
3. Third, there is a greater probability that their performance will rise to meet the expectations that have been established. Similarly, when boards of directors communicate their expectations of the CEO by showing a CEO Code of Conduct, the same benefits result.

📓 Sample Codes of Conduct can be found in the course materials