Code of Conduct

The code of conduct describes what employees of the organization must do to

implement the code of ethics. In a sense, the code of conduct is a subset of the
code of ethics and gives it a real-life application beyond what only seems like
philosophical speculation.

The code of conduct will give the code of ethics application in a variety of
situations. For example, imagine there is a rule in the code of ethics that states that
employees are supposed to obey the law at all times. This is a very general rule,
and you need to know how it can be applied to a variety of situations. The code of
conduct, then, will list which specific laws are meant to be obeyed in the
organization’s operations and the industry in general. The employees will then
know which laws are most important to their careers and will be better placed to
obey these laws.

Code of Ethics
Sometimes known as a value statement, a code of ethics sets out the general
principles that will guide the behavior of all the employees of an organization. The
purpose of a code of ethics is to set out the ethical premises under which all
decisions related to that organization should be made. If the organization is
committed to the preservation of the environment, for example, then the code of
ethics will probably explain that whenever employees are making a decision or
choosing between alternatives, they should go for the alternative that benefits the
environment the most.

Most codes of ethics work on the so-called golden rule, which is “to do unto others
that which we would like done unto ourselves”. Whenever employees or members
of an organization are faced with difficult situations or ethical dilemmas, the code of
ethics should come to their rescue and give them a clear indication of the best
course of action.

Similarities
Both the code of ethics and the code of conduct will be used to encourage
employees to do certain things as opposed to others, and both will be a guide for
employee behaviour. While one guides employee thought, the other guides
employee actions. The code of ethics will give guidelines about the kind of values
that employees should have and what choices they should favour in situations
where they have different alternatives from which to choose.

A code of conduct guides employees by making the assertion that there are actions
which are correct, and there are other actions which are inappropriate. What is
common to both is that the organization uses them to define a narrow range of
acceptable behaviour for its employees.
 Differences
The code of ethics and the code of conduct are both very unique documents. So,
what exactly makes them so different from each other? While both regulate the
behaviour of employees, they do it in wildly different ways. The code of ethics will
give standards which apply to a broad set of different situations without any stark
specificity in them. This is intentional and is meant to emphasize the values that the
employees or members of the organization are meant to have, rather than the
specific actions they should take. Ultimately, they are taught what approach to
adopt when making decisions about the correct course of action to take when faced
with an ethical dilemma.

A code of conduct is much more specific and requires very little thought or
independent decision making. You are given a bunch of rules governing your
actions that you are required to obey at all times. If you obey these rules, you are
safe. If you don’t, then you are forced to incur a penalty. The code will be very clear
about what is expected of the employees or members of the organization and will
have in place set procedures for what consequences will be faced if any of the
rules are broken.

Synergy in Large Companies

Larger companies typically have both a code of conduct and a code of ethics, both
working together and prepared separately or in the same document. These will
blend both the principles that inspire actions and the right actions to take. These
documents become much more important as a company grows larger because
there are many more opportunities for friction and ethically ambiguous scenarios in
a large company than there are in a small business.

Additionally, a large company has much more at stake with a brand to defend. It is
therefore important that it develops a working code to govern how it behaves in
relation to the outside world. Not only will its reputation be enhanced, but it will also
have greater legal protection.

Code of Conduct for Small Businesses

If you’re a smaller business, then you are likely to be able to survive without a code
of ethics or conduct. If you have less than 10 employees, then everyone is
interacting intimately with everyone else in a typical day. It is much easier to exhibit
appropriate behavior in such circumstances.

You do, however, have the chance of increasing the number of employees you
have over time. That can mean your ethical risks and hazards will increase over
time as well. Having these important documents early enough will ensure you are
well prepared to face the risks as they arise. They can also help to form a company
culture that only grows stronger as your company grows bigger, and they can also
make for a good marketing tool for potential clients and business partners.
 It really doesn’t matter which code your small business chooses to apply; what
matters is that it is consistent in both its formulation and implementations. The code
should bind every employee of the organization, no matter their level and no matter
the size of the code violation. If your code says that you shouldn’t steal company
profit, then the penalties should be incurred whether the employee stole a
computer or a box of ballpoint pens.

Elements of a Good Code of Conduct

The code of conduct of a business should be an indication of the circumstances of
the particular profession or industry that the organization occupies. However, there
are some things that all codes of conduct and all codes of ethics have in common.
All unprofessional behavior, for example, should be discouraged. That includes
behavior that most people would think of as immoral, behavior that goes against
the public interest or any behavior that would reflect badly on the profession or
industry, regardless of whether it would be considered immoral or not. Any
behavior indicating professional incompetence should be discouraged as well.

Outline for a Code of Conduct

Your code of conduct should have clear guidelines for the practices to be adopted
by members or employees, both internally and externally.

Examples of internal practices include the following:

 Dress code
 Cell phone and Internet use
 Sexual harassment
 Diversity
 Drugs and alcohol
 Equal Employment Opportunity
 Americans with Disabilities Act

Examples of external practices include the following:

 Communications with the public

 Advertising
 Environment
 Conflicts of interest
 Client confidentiality