code of conduct

A company code of conduct is a set of rules which is commonly written for employees of a company, which protects the business and informs the employees of the company's expectations. It is appropriate for even the smallest of companies to create a document containing important information on expectations for employees.{{cite web |title=Building a compliance department |url=https://legal.thomsonreuters.com/en/insights/articles/building-a-compliance-department |website=Thomson Reuters |date=26 July 2021 |access-date=20 January 2022}} The document does not need to be complex or have elaborate policies.

Failure of an employee to follow a company's code of conduct can have negative consequences. In Morgan Stanley v. Skowron, 989 F. Supp. 2d 356 (S.D.N.Y. 2013), applying New York's faithless servant doctrine, the court held that a hedge fund's employee engaging in insider trading in violation of his company's code of conduct, which also required him to report his misconduct, must repay his employer the full $31 million his employer paid him as compensation during his period of faithlessness.{{Cite book|url=https://books.google.com/books?id=3RaGDwAAQBAJ&q=%22faithless+servant%22&pg=PA472|title=Employment Law: Private Ordering and Its Limitations|first1=Timothy P.|last1=Glynn|first2=Rachel S.|last2=Arnow-Richman|first3=Charles A.|last3=Sullivan|date= 2019|publisher=Wolters Kluwer Law & Business|isbn=978-1543801064|via=Google Books}}{{cite web|url=https://www.ibtimes.co.uk/faithless-ex-morgan-stanley-fund-manager-ordered-repay-31m-former-employer-1429819|author=Jerin Matthew|title='Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer|date=December 20, 2013|website=International Business Times UK}}{{cite web|url=https://dealbook.nytimes.com/2013/12/23/the-huge-costs-of-being-a-faithless-servant/|title=The Huge Costs of Being a 'Faithless Servant'|first=Peter J.|last=Henning|date=December 23, 2013|website=New York Times DealBook}}{{cite web|url=https://www.greenwichtime.com/news/article/Morgan-Stanley-seeks-10-2-million-from-convicted-4193127.php|title=Morgan Stanley seeks $10.2 million from convicted former trader|date=January 15, 2013|work=GreenwichTime}}

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In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code of Conduct for Organizations", provided{{who|date=April 2025}} the following working definition: "Principles, values, standards, or rules of behaviour that guide the decisions, procedures, and systems of an organization in a way that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all constituents affected by its operations."

While codes of conduct are commonly associated with organizations and institutions, individuals can also develop a personal code of conduct, to guide their behavior, decision-making, and responses to adversity. These personal codes can typically reflect a person's core values, ethical principles, and practise aspirational virtues - such as courage, honesty, discipline, or resilience.{{Cite web |last=Dates |first=Eric |date=2024-11-07 |title=Developing Your Personal Code of Ethics Examples |url=https://www.v-comply.com/blog/sample-personal-code-of-ethics-examples/ |access-date=2025-04-09 |website=VComply |language=en-US}}{{Cite web |last=Magazine |first=Brainz |date=2021-12-09 |title=Self-Discipline – A Code Of Conduct |url=https://www.brainzmagazine.com/post/self-discipline-a-code-of-conduct |access-date=2025-04-09 |website=Brainz Magazine |language=en}}{{Cite web |last=Fox |first=Erica Ariel |title=You Need A Personal Code Of Conduct. Here's Why. |url=https://www.forbes.com/sites/ericaarielfox/2022/02/16/you-need-a-personal-code-of-conduct-heres-why/ |access-date=2025-04-09 |website=Forbes |language=en}}

Historically, figures like Roman emperor Marcus Aurelius, through his philosophical reflections in Meditations, or the samurai class, through the Bushidō code, adhered to personal codes that shaped their worldview and conduct. In contemporary settings, individuals may adopt a personal code of conduct to uphold integrity, cultivate psychological resilience, or navigate unpredictable or stressful environments. Such self-imposed frameworks of rules can offer a structured psychological anchor by reinforcing a sense of agency and control.{{Cite book |last1=Seligman |first1=Martin E. P. |url=https://books.google.com/books?id=De12AQAACAAJ |title=Helplessness: On Depression, Development, and Death |last2=Ph.D |first2=Fox Leadership Professor of Psychology Martin E. P. Seligman |date=1975 |publisher=W. H. Freeman |isbn=978-0-7167-0751-6 |language=en}}

Psychological research suggests that individuals with a higher internal locus of control, defined as the belief that one can influence outcomes through their own actions, are generally more resilient and motivated in the face of adversity. Studies on learned helplessness and control have demonstrated that perceived control is closely linked to psychological well-being and adaptive coping behaviors. Developing and consistently adhering to a personal code may support an internal locus of control by encouraging deliberate, value-driven responses to life’s challenges. Writing down one’s personal code and reviewing it regularly can further reinforce commitment, aid in goal-setting, and improve behavioral consistency.

A code of conduct can be an important part in establishing an inclusive culture, but it is not a comprehensive solution on its own. An ethical culture is created by the organization's leaders who manifest their ethics in their attitudes and behaviour.{{cite web|last1=McMillan|first1=Michael|title=Codes of Ethics: If You Adopt One, Will They Behave?|url=https://blogs.cfainstitute.org/investor/2012/02/20/codes-of-ethics-if-you-adopt-one-will-they-behave/|website=Enterprising Investor: Practical analysis for investment professionals|access-date=10 February 2016|date=2012-02-20}} Studies of codes of conduct in the private sector show that their effective implementation must be part of a learning process that requires training, consistent enforcement, and continuous measurement/improvement:{{cite journal|last1=Doig|first1=Alan|last2=Wilson|first2=John|title=Business Ethics: A European Review Volume 7, Issue 3, July 1998|journal=Business Ethics: A European Review|volume=7|issue=3|pages=140–149|doi=10.1111/1467-8608.00100|year=1998}} simply requiring members to read the code is not enough to ensure that they understand it and will remember its contents.{{cite web|last1=ACC|title=Top Ten Tips for Developing an Effective Code of Conduct|url=http://www.acc.com/legalresources/publications/topten/codeofconduct.cfm|website=Association of Corporate Counsel|access-date=10 February 2016|archive-url=https://web.archive.org/web/20180907183010/https://www.acc.com/legalresources/publications/topten/codeofconduct.cfm|archive-date=7 September 2018|url-status=dead}} Castellano et al. describe Tom Morris' book If Aristotle Ran General Motors as "compelling" and "persuasive" in arguing that in addition to codes of conduct and ethical guidelines, the creation of an ethical workplace climate requires "socially harmonious relationships" to be embedded in practice.Castellano, J. F., Rosenzweig, K. and Roehm, H. A., [https://ecommons.udayton.edu/cgi/viewcontent.cgi?article=1002&context=acc_fac_pub How Corporate Culture Impacts Unethical Distortion of Financial Numbers], Management Accounting Quarterly, Summer 2004, accessed 7 January 2023 The proof of effectiveness is when employees/members feel comfortable enough to voice concerns and believe that the organization will respond with appropriate action.{{cite web|last1=Barman|first1=Tanya|last2=White|first2=Samantha|title=Implementing an effective corporate ethics policy|url=http://www.cgma.org/magazine/issues/2014/jun/20149701.html|website=Chartered Global Management Accountant (CGMA) Magazine|access-date=10 February 2016|date=June 2014}}

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• Banking Code{{Cite web|url=http://theconversation.com/bank-codes-of-conduct-add-bars-to-the-window-dressing-and-make-them-legally-binding-105391|title=Bank codes of conduct: add bars to the window dressing and make them legally binding|first1=Benjamin|last1=Koh|first2=Pat|last2=McConnell|date=October 25, 2018|website=The Conversation|accessdate=April 18, 2024}}
• Bushido
• Code of Conduct for the International Red Cross and Red Crescent Movement and NGOs in Disaster Relief
• International Code of Conduct for Private Security Service Providers
• Code of Conduct for Justices of the Supreme Court of the United States
• Code of Hammurabi
• Code of the United States Fighting Force
• Code of Service Discipline
• Declaration of Geneva
• Declaration of Helsinki
• Don't be evil
• Eight precepts
• Election Commission of India's Model Code of Conduct
• Five Pillars of Islam
• Golden Rule
• Geneva Conventions
• Hippocratic Oath
• ICC Cricket Code of Conduct
• International Code of Conduct against Ballistic Missile Proliferation (ICOC or Hague Code of Conduct)
• Izzat
• Journalist's Creed
• Kapu
• Moral Code of the Builder of Communism
• Pāṭimokkha
• Pirate code
• Rule of Saint Benedict
• Ten Commandments
• Ten precepts (Taoism)
• Uniform Code of Military Justice
• Vienna Convention on Diplomatic Relations

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• Programming ethics

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Category:Applied ethics

Category:Morality

Category:Political charters

Category:Rules