A lack of clear guidance for staff on their behaviour at work can damage your business. Simon Wicks looks at how having a code of conduct can reduce your risks

“Research shows that businesses with a code of ethics outperform those that don’t,” asserts Simon Webley, research director for the Institute of Business Ethics. “It’s one of the tools you can use to generate trust between you and your stakeholders – employees, customers, investors, suppliers and the wider community.”

Workplace dilemmas

Every business has to ensure the way it operates is legal. But managers and staff may also have to make decisions about their conduct in areas that are not laid down by law.

“On the whole, businesses have a good grip on conduct,” Webley explains. “But we are finding more and more that companies want to set out their standards for new employees.

“A code of ethics gives guidance about dealing with issues they face each day,” he continues. “These might include giving and receiving gifts, facilitation payments [bribes], conflicts of interest or paying suppliers according to contract. If there’s a dilemma, there ought to be a procedure for dealing with it.”

You can also use a code to address poor performance or absenteeism, alcohol and drug abuse, punctuality, dress, interacting with colleagues and the general public, personal use of the Internet during work time, and so on.

Creating a code

“A code of ethics should be tailored to your needs,” stresses Webley. “You should find out what issues your staff find difficult to resolve, so you are actually producing something that’s useful to them.”

Begin by outlining your business values. Then list key stakeholders, such as customers or shareholders, and detail your employees’ responsibilities towards each. Add guidance on dealing with common dilemmas and mention policies you already have in place.

The employees’ section of your code of ethics might include:

• an employee’s duty to contribute to the success of the business
• working environment (eg health and safety)
• giving and accepting hospitality and gifts
• conflicts of interest
• whistleblowing or ‘speaking up’
• personal conduct at work (eg treatment of colleagues and customers)
• your commitment to your staff (eg training and development).

End your code by stating how you will implement it.

Making it work

“You will need to give people a chance to ask you questions,” advises Webley. “It’s important that everybody is clear about the standards you expect.”

Make obeying your code of conduct a part of every employees’ contract of employment. This will stress your commitment to good practice and strengthen your hand when dealing with disciplinary matters.

Call a staff meeting to explain the code and promote it by distributing printed copies and pinning a summary to the staff noticeboard, or let people know via your company newsletter or intranet if you have one.

Business benefits

A commitment to good practice can help you attract good staff, Webley argues. “People want to work for an organisation they are proud of,” he continues. “If you don’t have a code of ethics, you could be at a disadvantage.”

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