A code of ethics is a written guide to acceptable and ethical behavior as defined by an organization

What is a Code of Ethics? What is a Code of Conduct?

They are, in fact, two unique documents. A Code of Ethics governs decision-making, and a Code of Conduct govern actions. They both represent two common ways that companies self-regulate. They are often associated with large companies, and provide direction to employees and establish a public image of good behavior, both of which benefit businesses of any size.

However, any company large or small, public or private, will benefit from having a set of documented rules in place where employees and other stakeholders can reference to ensure they are performing in their positions as expected by the company.

Code of Ethics:
Sometimes referred to as a value statement, it behaves like the "Company's Constitution" with general principles to help guide employee behaviour. The document outlines a set of principles that affect decision-making. For example if an organization is committed to protecting the environment and "being green", the code of ethics will state that there is an expectation for any employee faced with a problem, to choose the most "green" solution. It works on the bases of "treat others as you would like to be treated."

When faced with ethical dilemmas or debatable situations, what is articulated in the Code of Ethics can help guide decision making.

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Code of Conduct:
The Code of Conduct provides the meat and potatoes to the Code of Ethics. A Code of Conduct applies the Code of Ethics to a host of relevant situations. A particular rule in the Code of Ethics might state that all employees will obey the law. A Code of Conduct might list several specific laws relevant to different areas of organizational operations, or industry, that employees need to obey.

The Code of Conduct outlines specific behaviours that are required or prohibited as a condition of ongoing employment. It might forbid sexual harassment, racial intimidation or viewing inappropriate or unauthorized content on company computers. Codes, along with other measures, have helped some companies dig themselves out of scandals, and have helped many companies build a healthier workplace climate and reputation.

An example of an ethical dilemma that employees regularly come face to face with is gift giving and accepting. This can sometimes be a bit of a tricky situation to navigate because in some cultures small gifts are tokens of respect and gratitude. Acceptance of large gifts may produce the appearance of an improper relationship between the company and the recipient, and vice versa. Work with management while consulting the Code to come to a generally accepted resolution.

Similarities:
Both Codes are similar as they are used in an attempt to encourage specific forms of behavior by employees. Ethics guidelines attempt to provide guidance about values and choices to influence decision making. Conduct regulations assert that some specific actions are appropriate, others inappropriate. In both cases, it's the organization's desire is to obtain a healthy range of acceptable behaviors from employees.

Differences:
With similarities, comes differences. Both are used in an attempt to regulate behavior in very different ways. Ethical standards generally are wide-ranging and non-specific, designed to provide a set of values or decision-making approaches that enable employees to make independent judgments about the most appropriate course of action. Conduct standards generally require little judgment; you obey or incur a penalty, and the Code provides a fairly clear set of expectations about which actions are required, acceptable or prohibited.

Working Together:
Bigger organizations sometimes have both codes in separate formats, or they are sometimes combined into one general Ethics document that blends principles for the right action with a list of actions that are required or forbidden.

For The Smaller Business:
Many smaller businesses can survive without a formal Code in either sense. For example if a business has 1-10 employees, generally everyone is talking with each other and interacting with each other every day. So communicating appropriate behavior is much easier. However, as smaller businesses grow their employee numbers, ethical hazards and risks can increase, so having these documents can help shape cultural expectations about behavior, and can also serve as a solid marketing tool for potential business partners or clients.

Conclusion

Either way, it's critical that these documents are treated consistently in every instance of wrongdoing. The Code needs to apply to every employee from the ground up, and no matter how small the violation, appropriate discipline needs to take place. For example, if your code stipulates that theft of company property is prohibited, and an employee takes home one pack of post-it-notes from the supply inventory, that's theft, and should be treated as such.

These documents help employees understand how they can feel good about being contributing members to the company's future success. An organization's culture differs from industry to industry, and there's no one-size-fits-all solution for building and adopting a strong organizational culture. Tools to help manage the expectations of employees, and gather information on actions that challenge the code will help to build and strengthen the internal culture.

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A code of ethics is a written guide to acceptable and ethical behavior as defined by an organization

A code of ethics is a set of principles and rules used by individuals and organizations to govern their decision-making process, as well as to distinguish right from wrong. They provide a general idea of the ethical standards of a business or organization. However, people can have their own personal code of ethics as well. Keep reading for a more thorough explanation of a code of ethics, as well as several code of ethics examples.

A code of ethics is a written guide to acceptable and ethical behavior as defined by an organization
code of ethics example

Several professions have a code of ethics that exists independent of any particular employment. For instance, a doctor or lawyer is always bound by the code of ethics for their profession, regardless of whether they work for a large organization or are in private practice. These codes constitute the basic expectations of these jobs and guide them when making decisions.

Lawyers, paralegals and other employees of the legal profession are bound to a general code of ethics. A few of these governing ethics include:

  • Confidentiality - Lawyers must maintain their clients' confidence at all times.
  • Competence - Legal professionals must represent their clients with a high level of competence.
  • Professional Courtesy - Lawyers must treat their colleagues with fairness and courtesy.

The American Medical Association imposes a code of ethics on physicians. It addresses everything from interpersonal relationships with other staff members to information on patient care. For instance:

  • Trust - Doctors must instill a sense of trust between themselves and their patients.
  • Do No Harm - Doctors cannot engage in any activity that would cause harm to their patients.
  • Privacy - Doctors cannot share the details of their patients' medical treatments or histories without permission.

Corporations and have codes of ethics to help workers decide if certain behaviors are appropriate and acceptable when dealing with clients and outside agencies. Many organizations require employees to attend yearly training on ethics and, in some cases, to sign statements promising to adhere to all ethical guidelines laid out by the company.

Examples of ethics in the business world include:

  • Integrity - Employees should maintain honesty and clear communication in the workplace.
  • Teamwork - Members of a professional organization should work together to get the job done.
  • Objectivity - Employers should not make career decisions based on whom they like best or with whom they have personal relationships.

Teachers and other education professionals are role models to their students. Their code of ethics not only protects their students against mistreatment, but it also protects their sense of fairness itself. Some code of ethics examples in education include:

  • Consideration - Teachers should put the needs of their students first.
  • Growth - Educators need to pursue professional growth.
  • Communication - Teachers work with parents as a support team for each student.

Individual codes of ethics can originate from religion, secular philosophy or rules of social behavior derived from upbringing and experience. They are typically in line with the rest of one's society, but one may have stricter or more relaxed personal ethics as well.

Society at large assumes that certain ethics, morals and values can be expected regardless of religion, geographic location or nationality. The classic example is the Golden Rule: "Do unto others as you would have them do unto you." Other examples of societal ethical behavior include:

  • Respect - Citizens must respect another's property, choices and lives.
  • Loyalty - People put their family and friends' needs before their own.
  • Honesty - Individuals tell the truth to community members and authority figures.

Certain codes of ethics, such as religious codes of ethics, apply only to members of select groups. They are based on morals shared by tenets and members of that religion. Examples of religious codes of ethics include the Ten Commandments of Judaism, the Beatitudes of Christianity, the Five Pillars of Islam, and the Noble Eightfold Path of Buddhism.

Some shared ethics in these religions include:

  • Value of Life - Do not kill your fellow human.
  • Pursue Peace - Avoid violence when possible.
  • Do Not Steal - Don't take things that don't belong to you.

Personal codes of ethics do not require religion, however. Immanuel Kant's categorical imperative and the Utilitarian rule of the greatest good for the greatest number are both ethical codes that do not require any religious basis. Some of these ethics may include:

  • Sustainable Living - Live in a way that doesn't waste unsustainable resources.
  • Care for the Vulnerable - Those who are medically or economically disadvantaged should have priority of care.
  • Benefit the Greater Good - Make sure that your decisions help others rather than just yourself.

A code of ethics is only effective if it corresponds to a set of behaviors that uphold those ethics. The terms code of ethics and code of conduct are often used interchangeably; however, there are some key differences between them.

  • A code of ethics details the general ethics that a person or employee should uphold.
  • A code of conduct details the way that a person or employee should behave in order to uphold the code of ethics.

While a code of conduct may not always correspond to a code of ethics, a code of ethics must have a corresponding code of conduct. For example, if an organization includes honesty in its code of ethics, its code of conduct may include something like "Employees will come to their supervisor with any problems before discussing it with outside members of the team." A business that values safety in its code of ethics would set very specific safety rules in its code of conduct.

Codes of ethics are present at all levels of society, as well as in business and individual behavior. Many are codified in writing and enforced with penalties, while others are more malleable and dependent on the individual's perception of right and wrong. For further study of ethics and their place in the world, have a look at these examples of rights-based ethics.

  • What's the Difference Between Ethics, Morals and Values?

    Have you ever deemed someone’s behavior to be unethical? Have you ever questioned their moral code or the values upon which they base their decisions? When our minds wander to these places, the terms ethics, morals and values tend to feel very similar, but they are not quite the same. Keep reading for explanations and values, ethics and morals examples to learn how they are different.

  • Examples of Unethical Behavior

    What is unethical behavior, exactly? Unethical behavior is an action that falls outside of what is considered right or proper for a person, a profession or an industry. Individuals can behave unethically, as can businesses, professionals and politicians. However, one's definition of "unethical" depends on their own ethical standards and the standards of their society. Take a look at different unethical behavior examples that are generally agreed upon as unacceptable.