Managers of organizations have a right to create and require compliance with a reasonable code of employee conduct. The code of conduct is the organization’s mechanism for identifying the ethics and values of the firm, and it serves as a guide to individual action. Research shows that making a decision without using an ethical guide leads to less ethical choices, so ethical guidelines can have a positive influence.
Employees are more unethical when they believe they will not get caught and punished. Thus, most codes of conduct today also note the consequences that can occur if an employee does not follow the requirements in the code.
A code of conduct gives an employee a practical tool for determining whether or not an action that they are contemplating is within the acceptable boundaries of conduct within their organization. Virtually all organizations have a code of conduct. Generally, the larger the firm, the more likely the code of conduct will be in a written document or multiple documents.
Most large companies also have a specific section of the code of conduct, or a separate document known as the code of ethics, that spells out what is and is not ethical behavior.
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