Why you must have a Code of conduct?

Regardless of whether your organization has a legal mandate to have a code of conduct (as public companies are) or not, every organization should have one. A well-designed code not only articulates the values the organization wishes to foster in leaders and employees but at the same time, CoC also acts as a central guide for employees as to their conduct at the workplace. A well-written code clarifies the organization’s mission, values, and principles, and meeting them via standards of professional conduct.

A company has to take two important actions in rolling out its code of conduct.

Firstly, the organization’s code of conduct has to be short and focused. It should not be a lengthy document; indeed, it should be a short recitation of the organization’s mission, values, and principles.

Secondly, the organization should conduct a code of conduct training. It is an important way to communicate the company’s culture of ethics and expected compliance.

Why should you develop a Code of Ethics?

One of the most important reasons to develop a Code of Ethics is to communicate to employees the endeavor of the organization to do business responsibly. New employees must be aware of the organisation’s standards and expectations. 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.  If management adheres strictly to the code of ethics, a culture consistent with the code will grow among employees throughout the company.

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 when needed. 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 employees’ behavior provide a solid foundation for catching and addressing this kind of problem.


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 employees in a company culture consistent with the values you want to maintain throughout your organization.

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