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CLASS 7 - 1 - Difference Between A Code of Ethics and Conduct

There is a difference between a code of ethics and a code of conduct. A code of ethics provides general principles to guide decision making, while a code of conduct lists specific prohibited or required behaviors. Both aim to encourage appropriate behavior, but a code of ethics focuses on values and judgment, while a code of conduct requires little judgment and clearly defines expectations. Larger organizations may have separate codes or a combined document, while smaller businesses can often communicate expectations informally but may benefit from formal codes as they grow.

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155 views

CLASS 7 - 1 - Difference Between A Code of Ethics and Conduct

There is a difference between a code of ethics and a code of conduct. A code of ethics provides general principles to guide decision making, while a code of conduct lists specific prohibited or required behaviors. Both aim to encourage appropriate behavior, but a code of ethics focuses on values and judgment, while a code of conduct requires little judgment and clearly defines expectations. Larger organizations may have separate codes or a combined document, while smaller businesses can often communicate expectations informally but may benefit from formal codes as they grow.

Uploaded by

Asra
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What’s the difference between a code of ethics and conduct?

The terms “Code of Ethics” and “Code of Conduct” are often mistakenly used
interchangeably.

They are, in fact, two unique documents. Codes of ethics, which govern decision-
making, and codes of conduct, which govern actions, 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 benefits businesses of any size.

Code of Ethics:
Sometimes referred to as a Value Statement, it behaves like the Constitution with
general principles to guide behaviour; outlining 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’s articulated in the
Code of Ethics can help guide decision making.

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
work climate and reputation.

Similarities:
Both a Code of Ethics and a Code of Conduct are similar as they are used in an
attempt to encourage specific forms of behaviour 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, the organization’s desire is to obtain a narrow
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 of ethics or code of
conduct; 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 behaviour 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 behaviour, and
they also serve as a solid marketing tool for potential business partners or clients.

Either way, whatever type of Code an organization chooses to employ, it’s critical
that it is 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.

We believe that a great Code and a strong company culture is the heart of a
successful organization. We strive to help organizations build a culture of integrity,
transparency, and accountability. An organization’s culture is different in all
industries: we believe there’s no one-size-fits-all solution for building and adopting
a strong organizational culture. But we do strive to provide all organizations with a
solution that can be customized to fit the varying needs of different organizations,
while helping to build and strengthen internal cultures. One step in building a
successful culture is with the integration of a strong compliance program,
including a whistleblower hotline. This is a powerful tool for any organization to
implement in their proactive measures to ensure their business success and grow
their strong culture where employees can thrive.

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