A code of ethics is an important document defining the ethical expectations that an organization has for its employees. It defines the beliefs, rules, values and guidelines that a business and its employees are expected to follow in day-to-day operations. The code is not a "one size fits all" document. However, there are key principles that should be incorporated into the guidelines.
Foundation
A code of ethics should be brief and positive in tone and should make reference to relevant policies and procedures. It needs to define acceptable behaviors, promote high standards of performance, provide a standard to be used for self-evaluation and establish a basis for professional responsibilities. Its content will vary depending on the industry, regulations, requirements and objectives. An organization's principles or values should be listed in approximate order of importance.
Responsibilities to Employees
A code of ethics should define the organization's pledge to provide a safe and healthy workplace, free of harassment and discrimination. The work environment should be diverse, fair, and drug- and alcohol-free, and should provide an equitable balance between work and family responsibilities. Additionally, employees are to be provided the tools, materials and equipment needed to perform their assigned job duties.
Confidentiality
Employee, client and vendor records and information are to be kept private and confidential. All accounting records, organizational property and assets, proprietary information and personnel records must be maintained, protected and secured. Confidential information is to be used only for the organization's legitimate business responsibilities. Disclosure of privileged information is to take place only with or in the presence of authorized individuals.
Communications
Both internal and external communications are to be precise, truthful and transparent. Public information, advertising, marketing, disclosures and access to information are to be appropriate, valid and accurate.
Management Practices
Management is responsible for making ethical decisions and determinations, and the judgment of management personnel needs to be above reproach. Relationships with vendors, conflicts of interest, contract negotiations, gifts and gratuities, political endorsement and activity, and disclosure of financial interests must be performed fairly and justly.
Implementation
The code of ethics needs to be distributed to all employees and also placed in prominent areas of the workplace. Employees need to be informed of their obligation and right to report any issues or problems that they believe to be unethical. Employees also need to fully understand that the code will be enforced and unethical behavior in the organization will be addressed. The code needs to be reviewed and revised on a routine basis, perhaps annually.
