What is the Difference Between Code of Ethics and Code of Conduct

The main difference between code of ethics and code of conduct is that code of ethics is a standard of morals by which a company makes decisions about what is right or wrong while code of conduct is a set of rules and regulations that explain appropriate behaviour in specific situations.

Code of ethics and code of conduct are two different documents, although many people assume them to be the same. Code of ethics is the document that explains how decisions are made while the code of conduct dictates how employees must act. In fact, the code of conduct is formed directly from the code of ethics and reflects the core values of the company.

Key Areas Covered

1. What is a Code of Ethics 
     – Definition, Characteristics
2. What is a Code of Conduct
     – Definition, Characteristics, Areas Covered
3. What is the Relationship Between Code of Ethics and Code of Conduct
     – Outline of Common Features
4. What is the Difference Between Code of Ethics and Code of Conduct
     – Comparison of Key Differences

Key Terms

Code of Ethics, Code of Conduct, Morals, Values

What is a Code of Ethics

Code of ethics is a standard of morals by which a company makes decisions about what is right or wrong. Therefore, a code of ethics in a company helps its employees to understand the difference between right and wrong and use that understanding to make decisions. In brief, the code of ethics helps companies to conduct business with honesty and integrity.

Furthermore, the code of ethics typically includes values of the company, details of how the company plans to implement its values and vision, and guidance to employees on ethical standards and how to achieve them. Adherence to law, promotion of green business practices, confidentiality and privacy policies are also some sections code of ethics may cover.

What is a Code of Conduct

Code of conduct is a body of rules and regulations that explain the acceptable behaviour in a specific situation. Most businesses have a code of conduct. A code of conduct in a company explains how professionals must act within the organization. It, basically, determines what appropriate behaviour and inappropriate behaviour is. Moreover, it typically covers major legal, ethical and compliance risk areas in a business. Besides, some of the general areas it will cover include:

• Work environment – equal opportunity, policies about harassment, substance abuse, violence, safety, etc.
• Protecting the company’s assets – protecting intellectual property, use of company property, information security, etc.
• Conflicts of interests – insider trading, taking out loans, etc.
• Attendance and punctuality
• Anti-bribery and corruption, etc.

Furthermore, the code of conduct explains what employees must do to implement the code of ethics of the company. In other words, the code of conduct is the practical application of the code of ethics. The code of conduct is, in fact, formed directly from the code of ethics, and reflects the core values of the company.

If you would like to read a code of conduct, you can see this Google’s code of conduct, which is very easy to read and understand. 

Relationship Between Code of Ethics and Code of Conduct

• Code of conduct is the practical application of the code of ethics.
• In other words, the code of conduct explains what employees must do to implement the code of ethics of the company.

Difference Between Code of Ethics and Code of Conduct

Definition

Code of ethics is a set of principles based on values and morals by which a company makes decisions about what is right or wrong while code of conduct is a set of rules and regulations that explain appropriate behaviour in specific situations.

Basis

Code of ethics is the document that explains how decisions are made while the code of conduct dictates how employees must act.

Focus

While the code of ethics focuses on values, code of conduct focuses on rules and compliance.

Scope

Moreover, the code of ethics has a narrower scope than the code of conduct.

Access

Also, the code of conduct is usually only accessible to employees, while the code of ethics of a business is publicly disclosed.

Conclusion

Code of ethics and code of conduct are two different documents, although many people assume them to be the same. The main difference between code of ethics and code of conduct is that code of ethics is a standard of morals by which a company makes decisions about what is right or wrong. But, code of conduct is a set of rules and regulations that explain appropriate behaviour in specific situations.

Reference:

1.“Code of Ethics [with Examples].” Betterteam, Available here.
2. Leonard, Kimberlee. “Examples of a Code of Ethics for Business.” Small Business – Chron.com, Chron.com, 8 Mar. 2019, Available here.
3. LaMarco, Nicky. “Definition of Code of Conduct.” Bizfluent, 21 Jan. 2020, Available here.

Image Courtesy:

1. “Code of Ethics” By Nick Youngson (CC BY-SA 3.0) via The Blue Diamond Gallery
2. “Code of Conduct 2018” By Saumyaa Naidu – Own work (CC BY-SA 4.0) via Commons Wikimedia