The Chairman of the Institute of Directors Northern Ireland has urged Northern Ireland business leaders to overcome the challenge of establishing trust and encouraging a more honest business culture.
Paul Terrington, Chairman of the IoD Northern Ireland, made the plea in his address to a business audience of over 250 people at the organisation’s Annual Dinner, sponsored by Bank of Ireland and Arthur Cox, on Thursday 11th February.
A highlight of the business calendar, the event also saw Invest NI CEO and Chartered Director Alastair Hamilton announced as the winner of the 2016 IoD Lunn’s Award of Excellence – one of the longest-running business awards in Northern Ireland.
Referencing a recent IPSOS/Mori poll which found that business leaders were among a group of people who are least likely to be trusted, Mr Terrington said:
“Locally the business community has been much criticised in the last year, with the Public Accounts Committee accusing non-executive directors on public bodies of oversight failures and concluding that non-executive directors failed to abide by the Nolan principles of transparency in public life.
“We cannot escape the consequences of our actions and as directors we should be held to the highest standards of accountability – whether by the shareholders in our own companies or by government and its agencies where we advise and guide public bodies.
“Two years ago I urged politicians to deal with the lack of trust which was undermining the institutions and delivery of outcomes. However, if we criticise our elected politicians when they fail to live up to our expected levels of governance and trust, we should be prepared to take our own medicine. So the problem is not one which is remote, or somewhere else.”
Mr Terrington believes that public attitudes may not represent a fundamental lack of trust in business in just the way it is portrayed, but instead represent a widespread disapproval of certain business practices at particular companies and organisations, whose leadership, objectives and personal rewards often seem at odds with customers and employees.
He continued:
“Perhaps, given the context, we should be more specific about what we as business leaders should be doing to deal with issues of trust in our own enterprises and in business in general.
“The recurring themes on what underpins trust are transparency and honesty and a tone from the top that defines the purpose of an organisation, its values and place within wider society.
“We require a tone from the top which says that enduring businesses are about more than simply making money, just as enduring political structures are about more than simply winning the next election.
“There should be a partnership with society when trust is built by creating sustained relationships with stakeholders, supply chains and partners, and a business model where the board and leaders are role models for doing the right thing, professionally, personally and with their people and communities.
“All of this must be underpinned by a desire to trust and be trusted. We in the IoD stand for and promote the highest standards of business leadership. We will continue to accredit, build and encourage this leadership and to help business leaders meet this challenge of establishing and maintaining trust.
“The themes of competence, trust and development are core to our Charter and we will continue to work with business to meet the demands. Leadership in this key area is the most impactful factor on an intangible, but critical, business asset – trust.”
The IoD NI Chairman was joined on stage by John Lunn, Managing Director of Lunn’s the Jewellers, to present Alastair Hamilton with the IoD Lunn’s Award of Excellence trophy and Rolex watch.
Mr Lunn commented:
“Now in its 15th year, this award was created to celebrate individuals who have made an outstanding contribution to local business and to society in general.
“Alastair joins a long list of high-calibre leaders who are previous winners of the award and I warmly congratulate him on his well-deserved success.”
The guest speakers at the Annual Dinner were Northern Ireland snooker legend Dennis Taylor, who provided after-dinner entertainment with stories from his career, and Leo Johnson, brother of London Mayor Boris Johnson, who spoke about the opportunities and risks of sustainable leadership.