Guide to Codes of Ethics

Show your commitment to corporate responsibility with a business code of ethics

By Lea Terry

Extremely
Useful

8.0

out of 10

Add Your Comments

With so many corporate scandals making headlines, developing a code of ethics at your organization can protect you from legal and moral quandaries and ensures that all employees follow the same guiding principles. Business codes of ethics aren't just for multi-national corporations who serve millions of customers each year, they're necessary for any company that touches the lives of others, whether that includes customers, vendors, investors or employees.

Codes of ethics in business can bring your team together for a shared purpose--thereby improving morale as well as improving your image, enhancing your relationships and setting you apart from your competitors. Things to consider when writing a code of ethics:

The purpose of the ethics code -- to set up a formal set of procedures, for example, or to inspire employees to act more ethically.
The process for writing the code -- by committee, or by top leadership?
How the code will be enforced.
How often the code will be reviewed and, if necessary, revised.

Action Steps
The best contacts and resources to help you get it done

Identify the ethical standards most important to your organization

Before you can state to the world what your ethical standards are, you need to pinpoint your company's goals and vision. Invest some time in evaluating your company's current ethical style and identifying its intended direction for the future. This will help guide the creation of a business code of ethics you'll be proud to present to the public.

I recommend: Identify your ethical style with a quiz from the Center for Ethics and Business. Then learn how to create a mission statement at MindTools.

Find online models of business ethics codes

What makes a successful code of ethics? A look at the ethical standards of socially responsible and respected corporations can provide inspiration for your organization's ethics code.

I recommend: Search the Codes of Ethics Index at the Illinois Institute of Technology, or download the Statement of Values and Code of Ethics for Nonprofit and Philanthropic Organizations from Independent Sector.

Research the ethical standards for your industry

Your company's code of ethics will depend largely on what kind of product or service you provide and the target market you serve. Your industry's professional associations may have their professional codes of ethics that you can use as a starting point for your own company code of ethics.

I recommend: Check out the ethics codes for professional associations like the Direct Selling Association, the National Association of Realtors, the National Association of the Remodeling Industry, or the International Webmasters Association. Or consult your local or national professional or industry association.

Support your ethical standards with employee ethics training

Providing your employees with ethics training ensures they're not just following your directions, but can also evaluate the ethics and morality of an action or decision on their own. You can use ethics training for the creation of your business ethics code, to strengthen the ethics skills of your leaders, or to educate your entire team. And, ethics training is flexible, available as on-site seminars or workshops, or through online classes or videos and DVDs.

I recommend: Global Ethics University offers ethics training kits you can use to create an in-house ethics training program, in addition to online and on-site training. Register for a demo course. Redhawk offers online ethics training, and will adapt it for other languages and cultures.

Tips & Tactics
Helpful advice for making the most of this Guide

Give your code of ethics the same importance you do other company rules, whether it's an anti-discrimination policy or customer service procedures; make sure employees know your ethics code will be enforced just as strictly.
Use your ethics code as just the first step in creating a moral and ethical corporate culture. Set up an ethics committee to oversee your ethical standards, and to which employees can report ethics violations. Also, maintain an ongoing discussion about company ethics, through quarterly or monthly meetings or brainstorming sessions, for example.

The official source of Codes of Ethics is the Codes of Ethics page at Business.com

Featured Vendors

Sarbanes-Oxley: Reduce Compliance Risks
Take Control of Your Assets: Financial Reporting, Asset Tracking, Compliance Documentation & Business Property Tax Mitigation. Minimize Tax Costs Now!

www.AssetManagementResources.com

Free Desktop Guide - 6 Steps to Better Documentation
Learn to produce clear, compliant and effective policies and procedures.

Learning Programs | Services | Software | Discover Mapping

infomap.com