A code of conduct outlines the behaviour that is considered suitable for the organization’s healthy working environment. In certain circumstances, the employee faces a dilemma where he comes across two or more equally appropriate options. In such case, the code of conduct will guide him by clarifying what the company expects from the employee. 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. It also lists which specific laws are meant to be obeyed in the organization’s operations and the industry. This policy ensures ethical decision making and working in the environment.
A well-written code of conduct elucidates an organization’s mission, values, and principles, linking them with professional conduct standards. It is a central guide and reference for the employees to support day-to-day decision making. It encourages discussions of ethics and compliance, empowering employees to handle ethical dilemmas they encounter in everyday work. It serves as a vital reference, helping employees locate relevant documents, services, and other resources related to the organization’s ethics. A code of conduct serves three critical purposes: Compliance, Marketing, and Risk Mitigation.