Create a Code of Conduct

"There is no such thing as business ethics. There is only one kind - you have to adhere to the highest standards."

Marvin Bower, former managing partner of McKinsey & Company


Codes of conduct have found favor and acceptance among many leading companies and are popular today. In essence, a code of conduct refers to a set of behavioral principles or standards that companies pledge to follow voluntarily.

In addition to their own codes, many companies are endorsing codes developed by organizations such as the United Nations and chambers of commerce. Codes tend to be responses to concerns raised by consumers and other stakeholders, and as such are market-driven. For the most part, they are not legally binding, although it is not good to violate a code you have voluntarily adopted.

A good company code of conduct will address at least five main areas: (1) fair business practices; (2) rule of law; (3) fair employment and labor; (4) environmental issues; and (5) corporate citizenship.

If your company does not have a code of conduct, or if it does not endorse any external codes, change this right away. Directors, officers and managers, as well as senior employees should be encouraged to submit suggestions for the code. This process reinforces so many other positive components of good corporate citizenship that it, alone, is worth the effort.

(c) 2008 Adonis E. Hoffman