All sorts of organizations develop a Code of Conduct. Companies develop a Code of Conduct to promulgate principles and ethics that will make them attractive to customers, employees, and other stakeholders.
Non-profits create a Code of Conduct for these reasons and to ensure that employees and clients understand and trust their mission of service.
Professional associations develop a Code of Conduct for similar reasons and to suggest standards for ethical behavior across an entire industry and in the professional behavior of its members. The Code of Conduct should drive all interactions and representations. Several examples of a Code of Conduct were so powerful in guiding the behavior, standards, and ethics of an organization that they became famous in and of themselves.
The IBM Code of Conduct offers extensive descriptions of each principle so people and employees will understand clearly the company's expectations. A Code of Conduct can also be a document that details an organization's expectations and requirements of its vendors, suppliers, and partners. Also commonly called a supplier code of ethics, the Code of Conduct lays the groundwork for the organization's relationship with its partners.
For example, Apple's and the Electronics Industry's Supplier Code of Conduct states that "Apple is committed to the highest standards of social and environmental responsibility and ethical conduct. Another frequent component of the Code of Conduct for suppliers is that they are discouraged from offering gifts to employees who, by their Code of Conduct, are unable to accept them lest there be any questionable use of their services. A Code of Conduct that is developed either by a powerful, esteemed executive, often also the owner, or by a cross-section of employees sans such an executive's influence, is easier to incorporate and integrate.
It is more likely to affect the actual beliefs and operation of an organization. The Code of Conduct will more likely achieve full implementation and integration within the organization when more stakeholders are actively involved in its creation. Employee involvement creates employee ownership which is the soul of an organization's implementation of a Code of Conduct. Like the process recommended for the development, alignment, and communication of an organization's values or the integration of a strategic plan , participation contributes to the successful integration of a Code of Conduct.
Use these same recommended steps for your process to develop your Code of Conduct. A Code of Conduct is published and disseminated to its employees, and to existing and potential stakeholders such as members of the board of directors, customers, partners, vendors, suppliers, potential employees , and the general public.
It is the image that the company wants to convey to these stakeholders about who the company is and what these stakeholders can expect in terms of value-driven treatment. Frequently posted on the organization's website and in their annual report to shareholders, the Code of Conduct is both an internal commitment to a standard of behavior and beliefs and a public declaration of the organization's position on a set of standards, values, principles, and beliefs.
Here are several remarkable examples of codes of conduct, that are available online, to provide guidance as you develop your employee and company code of conduct. Actively scan device characteristics for identification.
Employees have a greater understanding of the business rules by having a code of conduct to follow, making life a bit easier for all parties involved. It improves the working situation for staff and promotes your business values too, attracting customers in the process.
Every code of conduct has to reflect the business it represents. This is because it reflects the daily operations of the company, their core values and the general company culture. This need for it to be tailored to the business means that there isn't one set code of conduct that every company can use. However, there are certain characteristics that all companies should include:. The code sums up what you should and shouldn't be doing at work. This could include explaining to employees that they shouldn't:.
There isn't someone breathing down your neck telling you to have a code of conduct, but there are definite benefits of having a concrete set of rules in place.
Larger businesses typically have them to create consistency and stability within their bigger groups of employees, but small companies tend to go about their business without a formal code in place. Employers might want to believe that their staff know what's right and wrong, but by having a code of conduct you can spell out whether specific behaviour or action is acceptable or not, making everyone's lives a bit easier.
Having rules to follow gives employees a structure from day one, making the whole process much more black and white if trouble is caused. There should be no ambiguity about a policy because this can lead to rules being bent, contradicting the whole point of the code in the first place. As well as setting out the rules, a code of conduct also explains what employees need to do if they ever need to report a violation of company policy, as well as showing staff what the consequences are of using false information in an attempt to conceal violation.
This could include detailing the behaviour that must be prevented:. The majority of larger businesses already comply to having a code of conduct, but smaller companies tend to go about their day-to-day business without a formal code in place. It must be stressed that all businesses should be code of conduct compliant now though. Whatever your size or industry, a code of conduct is a must-have.
Externally, a code serves several important purposes: Compliance : Legislation i. Marketing : A code serves as a public statement of what the company stands for and its commitment to high standards and right conduct.
Risk Mitigation : Organizations with codes of ethics, and who follow other defined steps in the U. Sentencing Commission's Federal Sentencing Guidelines, can reduce the financial risks associated with government fines for ethical misconduct by demonstrating they have made a "good faith effort" to prevent illegal acts.
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