The purpose of a Business Code of Conduct

A purposeful business code of conduct establishes an atmosphere of commitment in an organization. It not only lays down a strong cultural foundation for the business, but also helps companies enforce and implement legal as well ethical policies and procedures for all kinds of decision making.

A typical conduct of framework includes various important elements like the company’s core values and principles. In most organizations there is a board of committee that reviews all these codes of conduct made by the company and reinstitutes them every year. Only in some exceptional cases they are changed.

The business code of conduct becomes the most important part of the companies ‘ethical framework.’ The main purpose of the conduct code is to act as a detailed description of what is the most legal and ethical behavior expected out of the business.

It provides the business with a standardization benchmark against which they can measure their activities and also take decisions for future projects. The business code of conduct is created on the basis of the company’s main ethical statement.

Most of the times it is assumed that the business code of conduct is just the companies value statement. In reality it’s not, it is much bigger than that as it also contains guidelines on how to implement it and what are the penalties for violating it.

A business code of conduct is a ‘rule book/guide’ that contains all do’s and don’ts from legal as well as ethical point of view and act as check list on what companies as well as employees can and must enter into.

In most cases the company must take customer as well as employee complaints seriously and help them find a solution. A few important conducts that that the rule book covers are:

  • All kinds of Legal Issues
  • Relationships to be maintained with the customers
  • Health and safe environment of all who work for the organization.
  • Selling, advertising and marketing strategies that they can catch and utilize.
  • Other promotional activities that they can get into like paper saving, environment friendly, active participation for society, like donation against natural calamities to enhance the company’s image and brand.

A few advantages of having a business code of conduct are

  • It enhances the company’s core values, beliefs and sets the right culture.
  • Gives a vision and a mission to the company.
  • Builds a reputation of the company in the market
  • Keeps the company and its employee’s always from all legal and unethical issues.

A business code of conduct should never be thought of as a burden to the company. In-fact it is the ground on which the company sets its foundation and the better the code of conduct and its implementation, the better the company will do in the market. This rule book also keeps the business on track as it is directly linked to their decision making skills.

Submit a Comment

Your email address will not be published. Required fields are marked *