Codes of Conduct in the Workplace - Litigation & Employment

There are many reasons an organization may consider implementing codes of conduct for their workforce. Some companies are subject to regulations that make it a requirement, but a good code of conduct is more than just a compliance tool; it can also be a cornerstone of a positive and productive workplace culture. For organizations of all sizes – be they large corporations, small businesses, non-profits, or community-focused entities – a code of conduct can play a crucial role in nurturing a respectful and cohesive work environment.

What are Codes of Conduct?

A code of conduct is a formal document that articulates the principles and standards of behavior expected from employees within an organization. It serves as a roadmap for ethical decision-making and conduct, guiding employees in understanding what is considered appropriate and inappropriate in their roles. A well-crafted code of conduct helps set expectations by clearly communicating standards of behavior and promotes a positive work environment by fostering a supportive and inclusive workplace. A thoughtfully crafted code of conduct can be a mechanism to reinforce company values, while also meeting legal and regulatory requirements.

Tips for Creating a Code of Conduct

Get Input From Stakeholders

Engage your employees, managers, and external partners in the drafting process so that you collect diverse perspectives to address various concerns and enhance buy-in.

Include an Enforcement Mechanism

Some amount of transparency in enforcement maintains accountability and trust among your organization. When drafting your code of conduct, you should clearly outline procedures for reporting and investigating violations and explain potential consequences.

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Think Beyond Legalities

Don’t limit yourself to legal guidelines and regulatory frameworks when crafting your code of conduct; instead, reflect on your organization’s core values and ethical principles and supplement those legal requirements with standards that promote those values.

Be Realistic

Ensure the code provides practical and achievable guidelines for behavior rather than focusing exclusively on lofty goals. Avoid overly restrictive rules that could hinder operational efficiency, and create policies that can be reasonably achieved and are thus easily enforced.

Train Employees

Your work isn’t done after hitting “send” on a well drafted code of conduct. You should implement ongoing training programs to ensure understanding and comprehensive application of the code of conduct, helping to embed it into the organizational culture.

Common Mistakes in Codes of Conduct

One Size Does Not Fit All

Avoid the urge to copy and paste a standard code of conduct that isn’t tailored to your organization. Instead, customize one that is infused with your organization’s unique culture and values.

Too Specific

Avoid creating a laundry list of rules. Instead, provide clear guiding principles that can guide behavior in diverse situations. Examples are helpful but avoid the pitfall of trying to list out every potential violation.

Too Vague

While you want to avoid being too specific, you should also avoid extreme vagueness and ambiguity as well. The code of conduct should empower employees to identify and address unacceptable behavior; therefore, it should be clear and easy to understand.

Not a “One and Done” Solution

Your code of conduct should grow with your organization. Be open to feedback and review your code of conduct regularly to ensure it stays relevant and reasonable.
Inconsistent Application. Inconsistent application of a code of conduct can lead to a host of problems, ranging from loss of buy-in among employees to potential liability for discriminatory conduct. Set your standards and then apply them consistently, equitably, and fairly.

Beyond “Best Practices”

In addition to fostering company values and improving your company culture, if your organization operates out of the United States, a code of conduct may also be a legal or professional requirement. Various industries and sectors are governed by regulations that require organizations to establish clear ethical guidelines. Publicly traded companies are often required by the Securities and Exchange Commission (SEC) to implement codes of conduct as part of their compliance programs. Additionally, federal and state laws may necessitate codes of conduct to address specific issues such as workplace harassment or financial integrity.

To ensure your organization is meeting all applicable legal requirements, it is wise to consult with a legal expert. Reach out to a Gesmer Updegrove attorney to get expert advice on whether your organization is subject to any specific regulations and for advice on crafting a compliant and effective code of conduct.

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