One can hardly find a successful company without a comprehensive code of conduct. And that’s because people perform better when they know what is expected of them and have a straightforward and effective set of principles and standards to follow. So if your company or organization doesn’t have a code of conduct yet, it’s time to write one and share it with your employees right now.
In this guide, we will cover what a code of conduct is, why it is essential, learn what to include in yours, and get inspired by some popular code of conduct examples.
A code of conduct is a document providing employees with a set of rules, principles, standards, and regulations that outline what the employer expects of them. The code clarifies the company’s mission and values to the staff and explains how these values should be implemented. So although the document includes ideals and goals, it also provides specific rules and standards, practical procedures, and communication policies.
The company’s culture often relates to how employees are expected to behave, ethical principles, and mindsets. But usually, these indicators are the subject of a code of ethics, not a code of conduct. So ensure you got a comprehensive but effective code of conduct.
A code of ethics refers to ethical principles, mindset, decision-making methods, and moral character. It’s a document within which you can find references to integrity, equality, inclusivity, kindness, and respect. A code of ethics offers an overall perspective of the company’s culture, beliefs, and moral status. On the other hand, a code of conduct is business-oriented and includes clear policies referring to attendance, dress code, company property, communication, and employee interaction.
While some codes of ethics may include legal consequences regarding the violation of the code, almost all codes of conduct include procedural consequences for not following the code.
A code of conduct is important because it makes clear and transparent what the employer expects from the employees, what principles should be followed, and what consequences are to be expected in case of a code violation. The code of conduct also outlines the company’s culture, business motivation, and mission. It lets employees know what values are valued within the organization, the company’s goals, and what to expect from their work environment. Among the benefits of a code of conduct are:
Writing an efficient code of conduct is not easy because it needs to match your company’s culture, the industry’s specific legal requirements, if any, and the profile of your employees. But a few aspects make almost all codes of conduct because they provide structure, transparency, and trust. Remember to include in the code of conduct the following:
Related guidelines:
• What are company values, and 65+ examples.
• How to write your company mission and vision statement?
Include the company’s policy on:
Employees need to know:
Overall, a code of conduct should be clear and comprehensive and serve as a guide for all employees to follow to maintain a positive and productive work environment.
Enforcing a code of conduct means ensuring all your employees know and understand its content. Make a habit of presenting new employees with the company’s code of conduct as a step in their onboarding process. Also, create a straightforward procedure for sharing any code of conduct updates with your staff. To ensure adherence to the code of conduct, use the following tips:
Now you better understand what you should add to your code of conduct. Still, here are some best practices for writing a good code of conduct:
Merck is a biopharmaceutical company with a long history, intensive research policy, and over 69,000 employees. Their code of conduct is public and focuses on business practices and compliance with recommendations set forth by the U.S. Department of Health and Human Services and the Code on Interactions with Healthcare Professionals created by the Pharmaceutical Research and Manufacturers of America (PhRMA). They also outline their policies regarding diversity and inclusion, social and environmental responsibility, patient confidentiality, and more.
The latest version of their code of conduct can be downloaded here.
The Japanese beauty company currently operates in 120 countries. Therefore, their code of conduct is adapted to each country’s legislation and states the rules and actions that must be taken by their employees worldwide. The document includes decision-making guidelines, human rights, diversity policies, procedures for a healthy and safe work environment, and standards for interaction with customers, business partners, and shareholders. The code of conduct also outlines Shisheido’s environmental and social responsibility mission and compliance with industry-related legislation.
A direct link to the English version of their code of conduct can be found here.
One of the leaders in photo and video equipment, Canon concentrated its business philosophy on a single word: “kyosei,” meaning “living and working together for the common good.” The company’s code of conduct is a comprehensive guide covering everything from what is expected from their employees to consequences for code violations, Canon’s contribution to society, fair practice, and the company’s ethics. The document also covers the management of the company’s assets and property, information management, work-related conflicts, and working environment behavior.
Kraft Heinz’s code of conduct is a 16 pages document that emphasizes the company’s mission for ethical standards, safety in the working environment, confidentiality, diversity and inclusion, quality standards, and so on. The code also outlines marketing goals, interaction with customers and shareholders, the use of the company’s assets, work-related conflict policies, and the expected general behavior of their employees. Kraft Heinz doesn’t forget about social and environmental responsibility and encourages employees not to tolerate anything that doesn’t respect the code of conduct and report any violations as soon as possible.
The luxury fashion brand has a code of conduct specifically for its suppliers. According to the code, suppliers for Dior are expected to comply with “all applicable laws, regulations, and national and international conventions, as well as with best practices, in particular with regards to ethics, social responsibility and protection of the environment.” The document outlines labor standards and social responsibilities, environmental regulations and responsibilities, and business integrity requirements. The company also reserves the right to confirm supplier compliance through audits, inspections, and data analysis.
Discover the code of conduct for some of the most well-known companies:
Conclusion
Having a code of conduct is not something just big companies do. It’s a matter of principle to outline what you expect from your employees, suppliers, and business partners and, more importantly, what you won’t tolerate. Regardless of the legal aspect, a code of conduct shows respect, ethical principles, and responsibility. You can create a trustworthy working environment only if you promote transparency, fair trade, social and environmental responsibility, and business integrity. And it all starts with writing an honest and open code of conduct.
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