What is a Code of Conduct?
Most organizations have rules regarding workplace conduct. In other words, the dos and don'ts of acceptable behavior. These rules are typically written down and are known as a company's code of conduct.
A code of conduct includes a number of components
Ethics are a Guideline for a Code of Conduct
Why is it important for a company to have a code of conduct?
A carefully designed code of conduct spells out the ramifications of failure to comply with the rules. This helps protect both the employer and the employees by providing clear consequences and removing gray areas that could result in misunderstandings and misinterpretations.
It is beneficial for organizations to have clear rules that employees must follow when interacting with clients. This helps to promote a positive employee-client experience while maintaining or improving a company's reputation.
The rules of a code of conduct help employees make decisions that align with the shared values of the company. They provide concrete parameters that employees can use to determine how they will behave.
With a code of conduct in place, employers have a benchmark with which they can review both employee performance and that of the organization as a whole.
A code of conduct sets forth the rules for expected behaviors for all members of an organization based on a company's ethics. It also sets the course for future business relationships and company growth.
Since everyone is expected to abide by a company's code of conduct, everyone has the same set of rules to follow. This helps level the playing field and can promote a sense of unity and teamwork.
Real-Life Breach of Code of Conduct Example
Did you know that in 2012, the U.S. Department of Justice prosecuted an employee of the investment management company, Morgan Stanley, for a federal breach of code of conduct? This employee had received seven compliance training sessions and 35 related reminders but admitted to thinking of them as a formality and not something that they actually needed to pay attention to.
Components of a Code of Conduct
A well-built code of conduct includes a number of components.
Here are some myths to look out for:
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Policies and Procedures
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Company Mission
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Compliance
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Consequences
Learn how to craft a code of conduct with EasyLlama’s training
Helping over 8,000+ organizations create a safer, more inclusive company culture.
With EasyLlama training, your employees will discover how to be more aware of discrimination, bias in the workplace, and reap the benefits of a diverse and inclusive workforce. Here are some of the topics covered in our course:
