How to Develop a Corporate Code of Conduct
A corporate code of conduct is a company's internal policy that defines standards of practice for its employees and board members. It sets requirements for employee relations and behaviors. A good code of conduct will promote high standards of practice, establish a system for professional behavior and responsibilities and define acceptable and unacceptable behaviors. It's voluntary and can address a number of different issues, such as business dealings with other companies, worker's rights, workplace relations, the treatment of intellectual property and reimbursement of expenses.
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Instructions
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Spell out what's important to your organization. A corporate code of conduct should be tailored to your company's specific needs. The code should state the company's fundamental principles and standards and address how your employees should behave in the workplace and how they handle business relations with vendors and customers. Several areas to consider are offering and accepting courtesies, avoiding conflicts of interest, handling confidential information, equal opportunity and harassment, working with consultants, environmental regulations, compliance with antitrust laws, preserving company assets, recording transactions and how costs are incurred and approved.
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Get employees in all departments involved in the writing of the code. Consult key stakeholders, such as vendors and customers. Define what's important to your employees, vendors and customers and how to deal with such situations. The code should be easy for employees to follow and implement.
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Use succinct language and directions, especially in terms of enforcement. The code should be specific regarding who determines if a violation has occurred, how and to whom to escalate the issue and the consequences for violations. The code should address the organization's chain of command, clearly spelling out whether an employee's immediate supervisor or senior manager will be responsible for determining violations.
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Create a plan of educating employees about the code. A corporate code of conduct is useful only if your employees know about it and understand the consequences of violations. New employees should be given training about the code and the company's expectations of behavior, especially in large organizations.
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Tips & Warnings
Consult other corporate codes of conduct to help write your company's code, but tailor the code to meet your company's specific goals. If your company does business internationally, consult the Foreign Corrupt Practices Act for guidance on how to deal with international relations.
