Code of Conduct

• A code of conduct is a vital asset for any company to have and we will
look at the following questions in order to understand this
• What is a code of conduct?
• Why create a code of conduct
• What to include in a code of conduct
What is a code of conduct?
• It is a legal document that outlines a set of correct behaviours which
individuals need to follow towards others and the organization as a
whole. The code of conduct is a set of standard social
norms, regulations and responsibilities of each individual in the
company.
What is a code of conduct? Cont’

• A code of conduct is a set of values, rules, standards, and principles

outlining what employers expect from staff within an organization.
Creating a code of conduct is a statement from leadership laying out
their expectations and communicating the ethical principles they feel
are most fundamental to success.
What is a code of conduct? Cont’

• Generally, it reflects the culture already present, or the culture

leadership is looking to promote.
• A code of conduct is closely related to a code of ethics, to the extent
where the phrases are often interchangeable.
• However, while there is tremendous overlap, there is also a slight
difference between the two
What is a code of conduct? Cont’

• A code of ethics is broader, providing a set of principles that affect

employee mindset and decision-making.
• A code of conduct offers principles defining the ethics of a business,
but it also contains specific rules for employee actions and behaviour.
• Generally, both are combined into a single document, and an
organization rarely has a different code for each.
What is a code of conduct? Cont’

• A code of conduct in practice can range from big picture ideals to

specific rules. For example, a code of conduct can outline how
employees should behave to reflect the organization’s wider mission,
but it can also define fixed regulations related to internal practices
such as dress code or break policy.
What is a code of conduct? Cont’

• A code of conduct could emphasize ethical attitudes and staff

communication policies to prevent conflict or harassment while also
outlining the consequences for poor behaving that violates the code.
What is a code of conduct? Cont’
• It is important that it is clear and comprehensive covering all the
important areas for your organization. The code of conduct becomes
a legal agreement between the company and the employee upon its
signing by a new recruit.
Importance of code of conduct

• The main purpose of a code of conduct is to set and maintain a

standard for acceptable behaviour to all stakeholders in a company.
It is a reminder to the employees of what is expected from them. It
further highlights that their actions should be always aligned with
the ethos (philosophy, beliefs, character) of the business..
Importance of code of conduct cont’
• In addition, it should provide understanding of consequences and
disciplinary actions if the conduct is broken.
• It is often believed to be the same as code of ethics. However, that is
not the case. A code of conduct provides guidelines about acceptable
behaviour, while a code of ethics is a set of principles about a
company’s judgement.
What should a code of conduct for employees
reflect ?

• A code of conduct for employees is likely to differ across industries,

however, the code of conduct should reflect on the professional
standards and behaviour expected from the employees, service
providers, partners and other relevant stakeholders in the
organization.
Integrity and ethical standards of the company
• Integrity and ethical standards of the company demonstrates the
core values of the business which may include integrity itself,
transparency or honesty among others. It is imperative that the
document clearly outlines how to handle any conflict and what is
expected if conflict of interests occurs from the stakeholders.
Level of professionalism
• The code of conduct should spell out the level of professionalism
which the employees should adopt in following the reputation and
standards of the business. The expected behaviour should be aligned
to the nature of the profession itself. Thus, the tone of the document
is likely to vary across different industries as some require more
attention and comprehensiveness of the contents of a code of
conduct.
A code of conduct is a public statement
• The Code of conduct also acts as a public statement providing the
users and customers of a business with understanding of the ethics of
the company, how their data will be handled and other information
and standards that might concern the public.
A code of conduct provides protection from
litigation
• The document serves as a protection from unnecessary penalties
regarded to ethical misconduct as it outlines measures to follow in
order to prevent illegal behaviour and to follow best practices in the
industry.
Why create a code of conduct

.
• With a code of conduct in place, the organization has a framework to
inform ethical decision-making for each and every stakeholder. While
it is not a turn-key solution to every dilemma an employee faces, it
shows staff the organization’s guiding principles and helps them make
better choices in their daily activities.
Why create a code of conduct cont’

• A code of conduct is also a vital part of a company’s compliance and

legal policies. For example, in other countries, public organizations
must have a code of conduct in place. Plus, from a compliance point
of view, if an employee engages in illegal activity while at work, a
code of conduct provides documentation showing they broke
company policy.
Why create a code of conduct cont’

• By creating a code of conduct:

• The staff understands what rules and expectations management has.
It defines how to act while at work, how to communicate both
internally and externally, and helps employees be successful at the
company.
• The organization has concrete company policies to help compliance.
• Potential customers and business partners understand the values of
the organization.
Why create a code of conduct cont’

• Although, we have focused on the internal effects of a code of

conduct. But creating a code of conduct also has benefits in attracting
new customers. Showing the values that the organization believes in,
and backing it up with actions, can help engender a positive and
receptive attitude from potential customers.
Why create a code of conduct cont’

• Being able to showcase the ethics and principles an organization

stands for, will only become more critical in the modern marketplace.
Creating an accurate and honest code of conduct that reflects the
organization’s beliefs is a great starting point to let customers know
who they are supporting with their business.
What to include in a code of conduct

• Your organization’s specific purpose for adopting a code of conduct

will define the scope that you should focus on. Some choose to focus
on only the most essential values and guidelines to not overburden
employees with information they may forget. Some seek to be more
comprehensive and produce documentation covering as many
aspects as possible.
What to include in a code of conduct
Your code of conduct should include information in some form
regarding:
• The values your organization believes in
• Guidelines for behaviour
• Day-to-day business practices
• How employees should interact with outside parties
What to include in a code of conduct
• It is also essential to define the procedures and consequences of code
violations where applicable. It may be more challenging to identify a
code of conduct violation when it comes to company values.
However, employees should know the disciplinary processes for fixed
rules (harassment, tardiness, etc.).
What to include in a code of conduct
• Finally, codes of conduct are typically prefaced with a letter from the
CEO that provides a personal touch and emphasizes the leadership
team’s commitment to the principles and rules it contains.