A code of conduct is a written guideline that defines the ethical principles which govern decisions and behavior in an organization or company. It provides an outline of how employees are expected to behave towards their colleagues, supervisors, and the organization as a whole. A code of conduct reflects organizations’ daily operations, including its core values and the general culture of the organization or company. As such, a code of conduct is usually specific to the organization it represents. A standard of conduct highlights rules and values that make an organization or company remarkable and able to stand out from other resembling companies in the industry.
1. What is the purpose of a code of conduct
2. How to develop a code of conduct company policy
3. What to include in your company’s code of conduct policy
Depending on the company’s preferences, a code of conduct can also be called a code of business ethics, code of ethics and standards, or code of ethical business conduct. Despite the name it’s called in an organization, their primary purpose is to act as an outline for employee decision making within the company.
The code of conduct relays significant information to both internal and external stakeholders about the principles and values of an organization, its employees, and management. Consider these standards as the basis point of an organization, a thorough outline of what the organization or company accepts, and the manners in which employees of the organization conduct themselves within and outside the organization. Therefore, a code of ethics outlines how both the internal (employees and management/Human Resource department) and external (customers, suppliers, and partners) stakeholders can expect to be treated by the organization.
The majority of organizations and companies have a code of ethics that echoes their unique principles and values. The aim of developing a company policy is to highlight the company’s values and beliefs to gain a competitive advantage against their competitors. The policy usually targets employees, customers, and other stakeholders, such as partners.
For instance, most non-profit organizations craft their code of conducts to ensure that employees and customers comprehend their mission and values, as well as trust them. Other organizations craft their code of conduct to outline their standards across the industry and the professionalism of their members, as well as ensure clients and employees understand their values and trust their mission.
How to write a code of conduct for your company
Usually, a code of conduct is written by an administrative team; refined by a cross-selection of coworkers from different departments, such as marketing, supplier relationships, or HR staff, depending on the company’s mode of operation and management style. In most scenarios, ethical codes developed in this manner are easy to integrate and incorporate within the company.
It’s advisable to carry out research and observe how other companies have written and distributed their ethical policies that bore fruitful results. There are many alternatives to use when creating your company’s code of ethics such as a question and answer approach or using a conversational method.
1. Evaluate the organization’s mission statement and core principles
The main aim of a company policy is to assist employees to make the right decisions about the company’s or organization’s values and beliefs, which usually are indicated in the mission statement of the company.
2. Talk to the parties involved (customers, employees, partners)
All members (clients, employees, and stakeholders) of your organization play a critical role when it comes to writing conduct policy. You need to understand what they consider to be valuable and require the company to uphold. Look for input from all these people to ensure that the code you’re developing reflects the company’s principles and core values.
3. Analyze prior ethical issues
This section focuses on reviewing how the company or organization blundered in the past concerning ethical problems as well as those areas it prospered. Analyzing the trends about moral codes of conduct in the workplace enables your organization to fix the problem areas and reinforce the functional areas.
4. Investigate and review how and why other companies have failed
Do you have any other companies or organizations within the same industry as yours? Consider how these companies’ ethical codes failed and why they failed, to avoid such downfalls. Cover all the issues that may have led these companies’ codes to fail in your company’s policy.
5. Develop a draft code of conduct for stakeholders to review
Provide a copy of the drafted policy to all the members of your organization and provide them with an opportunity to add their input, to ensure that you’ve captured all the aspects the company or organization wishes to relay to the stakeholders and gain a competitive advantage against other companies in the industry. A code of conduct will consequently be successfully implemented and integrated within a company if more stakeholders participate during its creation process.
6. Create the final draft, publish it and distribute it
On completion, and sure that the core values and principles of the company are effectively communicated circulate the final draft throughout the organization and the general public, to act as a form of declaration of what should be expected from the company. Ideally, a code of conduct should be disseminated to employees, stakeholders (suppliers, the board of directors, clients and traders) and the general public. It conveys the image an organization wishes to share about their core values and what stakeholders should expect.
The code of conduct should be posted in the employee handbook, the company’s website, and their annual reports. The policy is an internal loyalty to a set standard of behavior and an external affirmation of the organization’s position on a set of rules, values, and principles.
Below you will find some of the most remarkable code of conducts, which can act as a guideline when writing your company’s policy:
a) Google’s Code of Conduct
This policy is readily available online. The document highlights whom the policy applies to and how misconduct will be handled. Google’s policy encourages freedom of expression and taking responsibility in cases of misconduct, while reflecting the general scope of the company’s operations and culture. The document uses concise and straightforward language to address the company’s policy which enhances its readability and comprehension.
b) Coca-Cola Code of Business Ethics
The Coca-Cola code of conduct highlights a unifying theme which acts as the basis for all the elements in the policy, including standards of using company property, conflict of interest, use of company information, and dealing with external stakeholders. Coca cola’s code is visually appealing and subdivided into various sections, each addressing a specific element of the work policy in a well-organized manner. Moreover, it provides situational examples which enhance readers’ comprehension.
c) Hershey Code of Ethical Business Conduct
Hershey Company’s work policy defines what it means to be part of the company and how every individual is expected to contribute to the core values of the organization by observing the standards of operations. Moreover, the company has included what if scenarios that assist employees in decision making, when confronting harassment and declining gifts from stakeholders.
A company’s code of conduct should be tailored to meet the company’s needs and highlight the regulations, principles, values, behavior, employee expectations, and relationship that governs a company’s operations.
Code of conduct examples
Although the conduct policy will differ between organizations, it highlights the guidelines which are consistent with the company’s policies and relays how the company perceives their image. A great code of conduct should be brief and easily comprehensible. It should capture the core values of the organization and highlight stakeholders expectations. Despite the uniqueness of the code of conduct, the best ones share characteristics such as readability, comprehension, and involve all the relevant members of the organization or company when creating it.
1. Policy brief and purpose
The primary purpose of a policy is to establish and develop specific standards of operations that are acceptable to the organization, their clients, employees, and the general public as well. Our code of conduct defines the expectations regarding employees’ behavior towards their colleagues, supervisors and the organization in general.
We value freedom of expression and communication. They aim to ensure the work environment remains productive, respectful, collaborative and well organized. The policy offers guidelines of how employees are expected to react in disputes, workplace discrepancies or offensive situations.
2. Scope
The scope generally focuses on who must follow the code of ethics. The policy applies to all employees regardless of rank or employment agreement, failure to which can result in disciplinary actions including demotion or termination of employment.
3. Code of conduct components
Depending on the company’s mission statement and core values, the elements within the code of conduct policy may differ significantly. The majority of companies require that employees follow the system while conducting their duties. Below is a possible outline of a code of conduct:
a. Compliance with the law
The company’s legality should be protected at all costs. This comprises environmental, safety and just dealings with the law. Employees are expected to be honorable and accountable when dealing with the company’s products, property, finances, shareholders and public image.
b. Inclusivity or equal opportunity employment
We support people from all backgrounds and identities regardless of gender, race, culture, ethnicity, age, and religious or political views. We strictly discourage unlawful discrimination or harassment by the differences mentioned above. Employment in the company is purely by meritocracy and qualifications that are directly related to professional competency.
c. Protection of company assets
Employees are expected to protect the company’s properties which can include physical, electronic or digital properties. Additionally, all company property should not be misused.
d. Respect
Our company encourages respect and hence will not tolerate discriminatory behavior, harassment or victimization. All employees are expected to conform to equal opportunity standards of the company and respect their colleagues.
e. Professionalism
Most companies require all employees to adhere to certain professional standards as stipulated in the policy. There are various aspects under professionalism that can be addressed, these include but are not limited to:
i. Personal appearance
Different companies have a certain way they expect their employees to appear, from the dress code to grooming. Generally, all employees should be neatly dressed in the appropriate clothes and well-groomed for the business or their position.
ii. Punctuality
Employees should stick to their schedules. There are exceptions for instances that hinder employees from following the expected working hours or days. Generally, all employees are supposed to be punctual when arriving or leaving work.
iii. Duty and authority
All employees are expected to meet their job targets with utmost professionalism for customers, stakeholders, and the general public. Those with high ranks are expected not to abuse their authority and to diligently delegate work to team members while considering their capabilities and workload.
iv. Collaboration
All employees are expected to collaborate and be friendly. No employee is expected to disrupt the work environment or prevent their colleagues from carrying on with their work.
v. Corruption
Accepting gifts or bribes from clients or other stakeholders is strongly prohibited. All employees are expected to observe integrity in their dealings with clients and other stakeholders.
vi. Benefits
Employee benefits such as time-off, insurance or other benefits should not be abused.
vii. Cell phone use or internet use at work
Using personal phones during working hours is strongly discouraged with exceptions of emergencies. Additionally, the internet should only be used to conduct business related activities and should not interfere with employee productivity.
viii. Conflict of interest
All employees are expected to protect the image of the company and hence should refrain from activities that could damage this image such as financial interests in other companies or accepting gifts and other courtesies for personal gain and at the expense of the company.
ix .Policies
All employees are expected to adhere to the company policy. In case you need assistance or have questions kindly consult your manager or the Human Resources department for clarification.
4. Disciplinary Actions
Note that disciplinary action will be taken against employees who frequently or deliberately fail to adhere to the code of conduct . The disciplinary action may differ contingent to the magnitude of the violation. Possible consequences include demotion, suspension or termination, reprimand or legal action where the law wasn’t observed.
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