

Once you have chosen the elements to include, outline each section with the information you feel is most appropriate to your organization.

When the company has specific steps to follow, they can demonstrate good faith effort in minimizing or even avoiding unethical or illegal acts. It also helps organizations protect themselves from damaging risks.

It serves as a means for maintaining compliance, especially in industries where there are specific codes and procedures that must be followed. Informing stakeholders, investors and potential employees of the company’s ethics and standards: Ethics and standards are important to the workplace because they have a direct connection to employee trust, performance and satisfaction.Īlong with these, there are other reasons why a code of business conduct is vital.Setting clear benchmarks as to how employee behavior and performance are measured: Having clear benchmarks ensures a level field for all employees and gives them the tools to recognize when actions don’t align with the organization’s goals or values.It also plays a significant role in improving employee recruitment and retention. Outlining a company’s values and principles: This is a way of showing the uniqueness of the organization and shaping the company’s structure.Building awareness around expected behaviors opens up avenues for dialogue and engagement. Ensuring all employees are made aware of what is and isn’t tolerated at work: Dealing with difficult employees is one of the key sources of workplace conflict.Having this explicitly stated within the organization handbook provides a central reference point. Providing a guideline for behavior and expectations within the workplace: When discussing job performance, this is one of the first indicators of what is expected.It demonstrates a company’s values and what the company expects and strives for in terms of company culture. Why is a code of conduct for business important?Ī code of conduct is important in the workplace because it provides employees with a concrete guide on how they’re expected to act while on the job. Codes of conduct are most often included in the employee handbook and may also be posted on the company’s website for investors, potential employees and stakeholders to view. Some organizations expect their employees to adhere to a code of conduct with many requirements and rules, whereas others are extremely simple. In the workplace, a code of conduct may also be referred to as a code of business ethics. A code of business conduct is a set of rules that guide people in daily practices and interactions with each other.
