How to Implement a Code of Ethics

A code of ethics is more than just an abstract philosophical treatise. It's a blueprint for living: a means of promoting certain standards of behavior that strengthen the moral standing of those who adopt them. Ethical codes often flow from the top down in businesses and social organizations, . Strong, viable codes create a durable organization, while organizations that adopt slipshod ethics (Enron is a prominent example) often collapse amid greed and scandal.

Instructions

1. Define the code of ethics you wish your organization to adopt. Include the values it believes in, the practical means of promoting those values (such as working conditions or equal opportunity hiring), the approach to other entities (such as customers or rivals), and the relationship with the larger community. Write this code down in a concrete form, and make sure the head of your organization (owner or CEO, for example) fully approves its tenets.

2. Establish a means of enforcing the code: consequences for violating it such as fines, garnished wages and the like. Make sure all possible consequences are clear, then write them up and attach them to the code itself.

3. Print the code and circulate it among your employees or members. Use email instead of hard copy if you wish. Give them all a few days to absorb its contents and ask for feedback describing ways it can be adjusted or improved. Establish a mailbox or email account where they can send their suggestions and make sure they all know how to respond in a manner that will be heard.

4. Vet the code, make any changes you feel are warranted and send it back to the head of your organization for final approval.

5. Include stipulations regarding the code in any agreements or hiring contracts your organization uses. New members or employees are thus made aware of the code and sign on to it when they agree to join your organization.

6. Distribute copies of the code to all members of your organization, including business partners if applicable. Make arrangements to include it in annual reports and make it available to the press if your organization has a public face. That clarifies your position on ethical matters and makes sure the larger world understands the values your organization adheres to.

Tips & Warnings

• Consider a training program to educate members on your code of ethics. It's helpful for them to know how to behave in certain business situations, for example, or to refrain from making any agreements on your organization's behalf which may violate the code. Lead by example. A code of ethics isn't worth the paper it's printed on if the heads of your organization don't adhere to it in all things. If you embody it yourself, you'll find those beneath you following it by default, and your organization will prosper as a result.

References

• B Corporation's PDF on implementing an ethical code.