A code of ethics is a collection of principles and practices that a business believes in and aims to live by. A code of business ethics usually doesn’t stand alone, it works in conjunction with a company’s mission statement and more specific policies about conduct to give employees, partners, vendors, and outsiders an idea of what the company stands for and how it’s members should conduct themselves.
The key in distinguishing a code of ethics from these other documents is to hit the right level of specificity. It should address both the particular nuances of the company’s industry as well as its broader goals for social responsibility and should be concrete enough to serve as a guide for employees in a quandary without laying out rules for every situation that could arise.
Policies can include issues such as a company’s commitment to not work with vendors who use child labor or are environmentally harmful, not discriminating in their hiring, and not taking bribes.
How to Write a Code of Ethics for Business: Setting Priorities
The first step a company has to take in laying out a code of ethics is deciding what values are important to it and what lines it won’t cross. Clarifying these details can be especially helpful as the company grows. Having HR educate incoming employees about the code of ethics and the company’s culture is especially important in the age of increasingly rapid job turnover.
Getting Input
A common mistake that companies make when drafting a code of ethics is not to consult employees. Even if you think you’re in tune with the daily trials and tribulations of your staff, you should solicit broader participation in the crafting of the code. Employees need to have a say in it but they also need to know why the code is important and why it ultimately contains the tenets that it does.
Don’t Sweat the Small Stuff
Making sure your code of ethics is neither too vague, nor too specific can be a challenge, and a slip up can make employees resentful of the endeavor. Companies often begin by pouncing on these sorts of transgressions and that immediately creates a hostile atmosphere because people don’t want to let go of that. You have to work with them from the big perspective until they self-realize what they need to do regarding the more specific scenarios.
Putting Someone in Charge
Even if senior management and employees embrace a code of ethics, someone needs to be put in charge of applying and updating it. This person is typically known as an ethical officer or, in more intimidating terminology, a compliance officer. They need to be reliable, have a strong commitment to the company’s success, and good people skills. They also need to have access to senior management or the board of directors for periodic updates or in case a problem arises.
The role of ethical officer typically falls to somebody on the HR or sales team. This person is also in charge of the system for monitoring and reporting misconduct. Like the process for creating the code, this should be done anonymously as any whistleblower would likely be concerned about what rocking the boat would do to their career.
Some companies kick the tires of their adherence to the code of ethics by checking in with both managers and employees about it during performance reviews. It’s also crucial to make your code of ethics a dynamic thing that changes as your business changes.
Source: https://www.inc.com/guides/how-to-write-a-code-of-ethics.html