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A code of conduct is a set of rules outlining the norms, rules, and responsibilities or proper practices of an individual party or an organization.

Companies' codes 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.^[1] 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.^[2]^[3]^[4]^[5]

Accountants' code of conduct

In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code of Conduct for Organizations", provided 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."

Codes of conduct in practice

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.^[6] 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:^[7] simply requiring members to read the code is not enough to ensure that they understand it and will remember its contents.^[8] 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.^[9] The proof of effectiveness is when employees/members feel comfortable enough to voice concerns and believe that the organization will respond with appropriate action.^[10]

Examples

References

^ "Building a compliance department". Thomson Reuters. 26 July 2021. Retrieved 20 January 2022.
^ Glynn, Timothy P.; Arnow-Richman, Rachel S.; Sullivan, Charles A. (2019). Employment Law: Private Ordering and Its Limitations. Wolters Kluwer Law & Business. ISBN 978-1543801064 – via Google Books.
^ Jerin Matthew (December 20, 2013). "'Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer". International Business Times UK.
^ Henning, Peter J. (December 23, 2013). "The Huge Costs of Being a 'Faithless Servant'". New York Times DealBook.
^ "Morgan Stanley seeks $10.2 million from convicted former trader". GreenwichTime. January 15, 2013.
^ McMillan, Michael (2012-02-20). "Codes of Ethics: If You Adopt One, Will They Behave?". Enterprising Investor: Practical analysis for investment professionals. Retrieved 10 February 2016.
^ Doig, Alan; Wilson, John (1998). "Business Ethics: A European Review Volume 7, Issue 3, July 1998". Business Ethics: A European Review. 7 (3): 140–149. doi:10.1111/1467-8608.00100.
^ ACC. "Top Ten Tips for Developing an Effective Code of Conduct". Association of Corporate Counsel. Archived from the original on 7 September 2018. Retrieved 10 February 2016.
^ Castellano, J. F., Rosenzweig, K. and Roehm, H. A., How Corporate Culture Impacts Unethical Distortion of Financial Numbers, Management Accounting Quarterly, Summer 2004, accessed 7 January 2023
^ Barman, Tanya; White, Samantha (June 2014). "Implementing an effective corporate ethics policy". Chartered Global Management Accountant (CGMA) Magazine. Retrieved 10 February 2016.
^ Koh, Benjamin; McConnell, Pat (October 25, 2018). "Bank codes of conduct: add bars to the window dressing and make them legally binding". The Conversation. Retrieved April 18, 2024.

External links

Media related to Codes of conduct at Wikimedia Commons Quotations related to Codes of conduct at Wikiquote

[1] "Building a compliance department". Thomson Reuters. 26 July 2021. Retrieved 20 January 2022.

[auto6-2] Glynn, Timothy P.; Arnow-Richman, Rachel S.; Sullivan, Charles A. (2019). Employment Law: Private Ordering and Its Limitations. Wolters Kluwer Law & Business. ISBN 978-1543801064 – via Google Books.

[auto4-3] Jerin Matthew (December 20, 2013). "'Faithless' Ex-Morgan Stanley Fund Manager Ordered to Repay $31m to Former Employer". International Business Times UK.

[4] Henning, Peter J. (December 23, 2013). "The Huge Costs of Being a 'Faithless Servant'". New York Times DealBook.

[5] "Morgan Stanley seeks $10.2 million from convicted former trader". GreenwichTime. January 15, 2013.

[6] McMillan, Michael (2012-02-20). "Codes of Ethics: If You Adopt One, Will They Behave?". Enterprising Investor: Practical analysis for investment professionals. Retrieved 10 February 2016.

[7] Doig, Alan; Wilson, John (1998). "Business Ethics: A European Review Volume 7, Issue 3, July 1998". Business Ethics: A European Review. 7 (3): 140–149. doi:10.1111/1467-8608.00100.

[8] ACC. "Top Ten Tips for Developing an Effective Code of Conduct". Association of Corporate Counsel. Archived from the original on 7 September 2018. Retrieved 10 February 2016.

[9] Castellano, J. F., Rosenzweig, K. and Roehm, H. A., How Corporate Culture Impacts Unethical Distortion of Financial Numbers, Management Accounting Quarterly, Summer 2004, accessed 7 January 2023

[10] Barman, Tanya; White, Samantha (June 2014). "Implementing an effective corporate ethics policy". Chartered Global Management Accountant (CGMA) Magazine. Retrieved 10 February 2016.

[11] Koh, Benjamin; McConnell, Pat (October 25, 2018). "Bank codes of conduct: add bars to the window dressing and make them legally binding". The Conversation. Retrieved April 18, 2024.

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-{{Short description|set of rules outlining the responsibilities of, or proper practices for, an individual, party or organization}}
+{{Short description|Set of rules}}
-{{Distinguish|Coda Conduct}}
-{{redirect|Codes of Conduct|the unproduced HBO pilot|Steve McQueen (director)}}
 A '''code of conduct''' is a set of rules outlining the [[social norm|norms]], rules, and responsibilities or proper practices of an individual party or an organization.
 ==Companies' codes 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.<ref>{{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}}</ref> The document does not need to be complex or have elaborate policies.
-{{see also|Ethical code}}
-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. 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 ''[[Chip Skowron|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.<ref name="auto6">{{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}}</ref><ref name="auto4">{{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}}</ref><ref>{{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}}</ref><ref>{{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}}</ref>
+Failure of an employee to follow a company's code of conduct can have negative consequences. In ''[[Chip Skowron|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.<ref name="auto6">{{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}}</ref><ref name="auto4">{{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}}</ref><ref>{{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}}</ref><ref>{{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}}</ref>
-== In practice ==
-A code of conduct can be an important part in establishing an [[Social inclusion|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 behavior.<ref>{{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}}</ref>  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.<ref>{{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}}</ref>  Simply requiring members to read the code is not enough to ensure that they understand it and will remember its contents.<ref>{{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}}</ref> The proof of effectiveness is when employees/members feel comfortable enough to voice concerns and believe that the organization will respond with appropriate action.<ref>{{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}}</ref>
 ===Accountants' code of conduct===
-In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code of Conduct for Organizations", provided the following working definition: "Principles, values, standards, or rules of behavior 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."
+In its 2007 International Good Practice Guidance, "Defining and Developing an Effective Code of Conduct for Organizations", provided 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."
+==Codes of conduct in practice==
+A code of conduct can be an important part in establishing an [[Social inclusion|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.<ref>{{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}}</ref> 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:<ref>{{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}}</ref> simply requiring members to read the code is not enough to ensure that they understand it and will remember its contents.<ref>{{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}}</ref> Castellano ''et al.'' describe [[Thomas V. Morris|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.<ref>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</ref> The proof of effectiveness is when employees/members feel comfortable enough to voice concerns and believe that the organization will respond with appropriate action.<ref>{{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}}</ref>
 == Examples ==
 {{colbegin}}
-* [[Banking Code]]<ref>Bank codes of conduct https://theconversation.com/bank-codes-of-conduct-add-bars-to-the-window-dressing-and-make-them-legally-binding-105391</ref>
+* [[Banking Code]]<ref>{{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 (website)|The Conversation]]|accessdate=April 18, 2024}}</ref>
 * [[Bushido]]
-* [[Chivalric code]]
-* [[Coca-Cola]] Code of Conduct<ref>{{cite web|publisher=Coca-Cola Company|url=http://assets.coca-colacompany.com/45/59/f85d53a84ec597f74c754003450c/COBC_English.pdf|title=Coca-Cola Code of Conduct|access-date=2014-04-29|archive-url=https://web.archive.org/web/20131019211402/http://assets.coca-colacompany.com/45/59/f85d53a84ec597f74c754003450c/COBC_English.pdf|archive-date=2013-10-19|url-status=dead}}</ref>
 * [[Code of Conduct for the International Red Cross and Red Crescent Movement and NGOs in Disaster Relief]]
+* [[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]]
+* [[Eight precepts]]
 * [[Election Commission of India's Model Code of Conduct]]
-* [[Ethic of reciprocity]] (Golden Rule)
 * [[Five Pillars of Islam]]
-* [[Geneva convention]]
+* [[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 (honour)|Izzat]]
-* [[Israel Defense Forces#Code of conduct|Israel Defense Forces – Code of Conduct]]
 * [[Journalist's Creed]]
+* [[Kapu (Hawaiian culture)|Kapu]]
 * [[Moral Code of the Builder of Communism]]
-* [[Patimokkha]]
+* [[Pāṭimokkha]]
-* [[Pirate code of the Brethren]]
+* [[Pirate code]]
+* [[Rule of Saint Benedict]]
-* [[Psychiatry#Ethics|Psychiatrists' Ethics – Madrid Declaration on Ethical Standards for Psychiatric Practice]]<ref>{{cite web|url=http://wpanet.org/detail.php?section_id=5&content_id=48|title=Madrid Declaration on Ethical Standards for Psychiatric Practice|website=World Psychiatric Association|access-date=2013-02-28|archive-url=https://web.archive.org/web/20160304140238/http://wpanet.org/detail.php?section_id=5&content_id=48|archive-date=2016-03-04|url-status=dead}}</ref>
-* [[Psychologists' Code of Conduct]]<ref>{{cite web|url=http://www.efpa.eu/ethics|title=EFPA Ethics – Board of Ethics|author=Bquadrats – Josi Swerts|website=efpa.eu}}</ref><ref>{{cite web|url=http://www.apa.org/ethics/code/index.aspx|title=Ethical Principles of Psychologists and Code of Conduct|website=apa.org}}</ref>
-* [[Recurse Center#Social environment and influence|Recurse Center "Social Rules"]]
-* [[Rule of St. Benedict]]
-* [[Solicitors Regulation Authority]] (SRA) Code of Conduct 2011<ref name="SRA">{{cite web|url=http://www.sra.org.uk/solicitors/handbook/code/content.page |work= SRA Handbook |title= SRA Code of Conduct 2011 |publisher=Solicitors Regulation Authority |access-date=25 October 2017}}</ref> (for solicitors in the UK)<ref name="SRA"/>
 * [[Ten Commandments]]
-* [[Ten Indian commandments]]
+* [[Ten precepts (Taoism)]]
-* [[Ten Precepts (Taoism)]]
 * [[Uniform Code of Military Justice]]
-* [[Vienna convention (diplomatic relations)|Vienna Convention on Diplomatic Relations]]
+* [[Vienna Convention on Diplomatic Relations]]
-* [[Warrior code]]
 {{colend}}
+==See also==
+* [[Programming ethics]]
 ==References==

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