What Are the Benefits of a Code of Conduct?

by Russell Huebsch; Updated September 26, 2017
Most companies have a code of conduct.

Although most companies have a written code of conduct they abide by, this idea did not exist a century ago. Having a company police itself may seem like an extra burden, but most companies see overall benefits from instilling a code of conduct.

Identification

A code of conduct is a company's voluntary belief in a set of morals, standards and proper behavior for its operations, enforced by the business's leaders. Codes of conduct usually fall in line with laws and general social mores against corruption.

Types

Codes of conduct usually result in all types of benefits. A code of conduct benefits the business itself, all members of a business, their clients and usually society as a whole, reports ManagementHelp.org.

Effects

Consumers often associate company ethics with brand quality. A company with a higher ethical standard tends to have a better public perception, and employees may be more likely to follow management's ethical guidelines themselves. Public demand for ethics has resulted in laws against child labor and unsafe working conditions.

Expert Insight

To see the benefits of a code of conduct, management must ensure employees follow company ethical standards. Ensuring the rest of a company follows a code of conduct starts from the top.

Potential

Codes of conduct are likely to become a bigger part of corporate and business culture, reports ManagementHelp.org. Codes of conduct are now taught in most business schools.

About the Author

Russell Huebsch has written freelance articles covering a range of topics from basketball to politics in print and online publications. He graduated from Baylor University in 2009 with a Bachelor of Arts degree in political science.

Photo Credits

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