Whats the difference between a code of ethics and judgment; you obey or incur a penalty, and the code
conduct? provides a fairly clear set of expectations about which
The terms Code of Ethics and Code of Conduct are actions are required, acceptable or prohibited.
often mistakenly used interchangeably. Working Together:
They are, in fact, two unique documents. Codes of ethics, Bigger organizations sometimes have both Codes in
which govern decision-making, and codes of conduct, separate formats, or they are sometimes combined into
which govern actions, represent two common ways that one general Ethics document that blends principles for the
companies self-regulate. They are often associated with right action with a list of actions that are required or
large companies, and provide direction to employees and forbidden.
establish a public image of good behavior, both of which For The Smaller Business:
benefits businesses of any size. Many smaller businesses can survive without a formal
Code of Ethics: code of ethics or code of conduct; for example if a
Sometimes referred to as a Value Statement, it behaves business has 1-10 employees, generally everyone is talking
like the Constitution with general principles to guide with each other and interacting with each other every day.
behaviour; outlining a set of principles that affect decision- So communicating appropriate behaviour is much easier.
making. For example if an organization is committed to However, as smaller businesses grow their employee
protecting the environment and being green, the Code numbers, ethical hazards and risks can increase, so having
of Ethics will state that there is an expectation for any these documents can help shape cultural expectations
employee faced with a problem, to choose the most about behaviour, and they also serve as a solid marketing
green solution. It works on the bases of treat others as tool for potential business partners or clients.
you would like to be treated. When faced with ethical Either way, whatever type of Code an organization
dilemmas or debatable situations, whats articulated in the chooses to employ, its critical that it is treated
Code of Ethics can help guide decision making. consistently in every instance of wrongdoing. The Code
Code of Conduct: needs to apply to every employee from the ground up, and
Provides the meat and potatoes to the Code of Ethics. A no matter how small the violation, appropriate discipline
Code of Conduct applies the Code of Ethics to a host of needs to take place. For example, if your Code stipulates
relevant situations. A particular rule in the Code of Ethics that theft of company property is prohibited, and an
might state that all employees will obey the law, a Code of employee takes home one pack of post-it-notes from the
Conduct might list several specic laws relevant to supply inventory, thats theft, and should be treated as
different areas of organizational operations, or industry, such.
that employees need to obey. We believe that a great Code and a strong company
The Code of Conduct outlines specific behaviours that are culture is the heart of a successful organization. We strive
required or prohibited as a condition of ongoing to help organizations build a culture of integrity,
employment. It might forbid sexual harassment, racial transparency, and accountability. An organizations culture
intimidation or viewing inappropriate or unauthorized is different in all industries: we believe theres no one-size-
content on company computers. Codes, along with other fits-all solution for building and adopting a strong
measures, have helped some companies dig themselves organizational culture. But we do strive to provide all
out of scandals, and have helped many companies build a organizations with a solution that can be customized to fit
healthier work climate and reputation. the varying needs of different organizations, while helping
Similarities: to build and strengthen internal cultures. One step in
Both a Code of Ethics and a Code of Conduct are similar as building a successful culture is with the integration of
they are used in an attempt to encourage specific forms of a strong compliance program, including a whistleblower
behaviour by employees. Ethics guidelines attempt to hotline. This is a powerful tool for any organization to
provide guidance about values and choices to influence implement in their proactive measures to ensure their
decision making. Conduct regulations assert that some business success and grow their strong culture where
specific actions are appropriate, others inappropriate. In employees can thrive.
both cases, the organizations 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
