What’s the difference between a code of ethics and conduct?

The terms “Code of Ethics” and “Code of Conduct” are often mistakenly used
interchangeably.

They are, in fact, two unique documents. Codes of ethics, which govern decision-
making, and codes of conduct, which govern actions, represent two common
ways that companies self-regulate. They are often associated with large
companies, and provide direction to employees and establish a public image of
good behavior, both of which benefits businesses of any size.

Code of Ethics:
Sometimes referred to as a Value Statement, it behaves like the Constitution with
general principles to guide behaviour; outlining a set of principles that affect
decision-making. For example if an organization is committed to protecting the
environment and “being green”, the Code of Ethics will state that there is an
expectation for any employee faced with a problem, to choose the most “green”
solution. It works on the bases of “treat others as you would like to be treated.”
When faced with ethical dilemmas or debatable situations, what’s articulated in
the Code of Ethics can help guide decision making.

Code of Conduct:
Provides the meat and potatoes to the Code of Ethics. A Code of Conduct applies
the Code of Ethics to a host of relevant situations. A particular rule in the Code of
Ethics might state that all employees will obey the law, a Code of Conduct might
list several specific laws relevant to different areas of organizational operations,
or industry, that employees need to obey.

The Code of Conduct outlines specific behaviors that are required or prohibited as
a condition of ongoing employment. It might forbid viewing inappropriate or
unauthorized content on company computers. Codes, along with other measures,
have helped some companies dig themselves out of scandals, and have helped
many companies build a healthier work climate and reputation.

Similarities:
Both a Code of Ethics and a Code of Conduct are similar as they are used in an
attempt to encourage specific forms of behavior by employees. Ethics guidelines
attempt to provide guidance about values and choices to influence decision
making. Conduct regulations assert that some specific actions are appropriate,
others inappropriate. In both cases, the organization’s desire is to obtain a narrow
range of acceptable behaviors from employees.

Differences:
With similarities, comes differences. Both are used in an attempt to regulate
behavior in very different ways. Ethical standards generally are wide-ranging and
non-specific, designed to provide a set of values or decision-making approaches
that enable employees to make independent judgments about the most
appropriate course of action. Conduct standards generally require little judgment;
you obey or incur a penalty, and the code provides a fairly clear set of
expectations about which actions are required, acceptable or prohibited.

Working Together:
Bigger organizations sometimes have both Codes in separate formats, or they are
sometimes combined into one general Ethics document that blends principles for
the right action with a list of actions that are required or forbidden.

https://blog.whistleblowersecurity.com/blog/code-of-ethics-and-code-of-
conduct-whats-the-difference

Why should you develop a Code of Ethics?

A code of ethics is a vital document for any business, as breaches of ethics can
land companies in serious trouble with consumers, other organizations or
government authorities. Creating a code of ethics makes decision-making easier
at all levels of an organization by reducing ambiguity and considerations of
individual perspectives in ethical standards.

The following are several reasons to consider adopting a Code of Ethics for your
company.

Shows employees you are a responsible company

One reason to develop a Code of Ethics for your business is that it communicates
to employees that your company is committed to doing business responsibly.
New employees know right away your company’s standards and expectations. If
management adheres strictly to the code of ethics, a culture consistent with the
code will grow among employees throughout the company. This kind of company
culture creates a kind of positive peer pressure to maintain a high level of work
consistent with the values of your company.

Shows customers you value integrity

Additionally, customers tend to feel reassured by the existence of a Code of Ethics

within a company. They feel that the company values its integrity and will operate
accordingly when doing business. Third party groups also tend to look more
favorably upon organizations that adopt a Code of Ethics, appreciating that some
attempt is being made to develop a company culture of responsibility and
honesty.

Prevents ‘innocent’ violations of ethics

Another reason to maintain a code of ethics is that they address matters that
might not occur to employees on their own. While codes don’t necessarily touch
on matters of illegality, they do address important matters that affect the
profitability, integrity and reputation of a business. Having a specific Code of
Ethics outlining the specific standards and expectations of your company for your
staff will sensitize employees to things that may not have been obvious to them
and avoid inadvertent, yet potentially harmful, missteps.

Provides a clear point of reference when enforcing corrective action

Lastly, another reason to consider keeping a Code of Ethics as part of your

company culture is that such a document will serve as a reference for corrective
action or even termination for employees who fail to meet these standards. A
widely known code removes anything arbitrary or murky from dealing with an
employee who consistently fails to behave in a manner that meets company
standards. Even one such employee can potentially cause great harm to a
company, but straightforward, objective expectations for employee behaviour
provides a solid foundation for catching and addressing this kind of problem.

Don’t forget keep it simple. When creating your code, get right to the point. Avoid
big legal sounding words and use bullet points instead of long winded paragraphs.
Remember, you have to address all your employees and they each have their own
levels of understanding of such documents.

A business, no matter how big or small, can always benefit from having a clear
Code of Ethics!

A business can always benefit from having a Code of Ethics in place both to avoid
potential problems and to address problems when they arise. If you decide to
develop one, consider what would motivate and unite your employees in a
company culture consistent with the values you want to maintain throughout
your organization.