A Code of Conduct is essential for developing structure, clarity, and a shared sense of purpose in the workplace. It provides employees with a formal framework for navigating ethics, professional interactions and behaviours.

But what exactly does a Code of Conduct entail, and is it really vital for companies to have one?

What is a Code of Conduct?

A Code of Conduct is a set of guidelines that outlines expected behaviours, ethical standards, and policies within a workplace. It generally covers:

The company’s vision, mission statement, and core values.
Hierarchal and organisational structures, and roles of employees.
Respect in the workplace, including anti-bullying and anti-harassment.
Integrity, such as honesty, confidentiality, and conflict of interest.
Compliance with laws and regulations.
Professionalism, outlining dress code, communication, and appropriate behaviour with colleagues and clients.
Proper use of company resources.

A well-constructed Code of Conduct serves as the backbone for the company culture. It ensures that all employees - from junior staff right through to senior executives - align with the same ethical and behavioural expectations.

Who Prepares a Code of Conduct?

Typically, the HR department, in collaboration with legal and compliance teams, is responsible for preparing the Code of Conduct – if a company is of a size to have all these. Management may also have input to ensure the guidelines reflect the company’s vision and values.

It’s not a one-size-fits-all document; the Code should be customised to fit the company’s industry, size, and unique challenges.

At MJSP, our highly skilled HR consulting experts regularly assist businesses with developing a Code of Conduct that is appropriate, clear, fair, and actionable – and provide ongoing support to ensure its adhered to.

How Is a Code of Conduct Implemented in the Workplace?

For a Code of Conduct to be effective, it needs to be more than just a piece of paper handed out as part of the employee onboarding process. Ongoing training is crucial, ensuring staff have a thorough understanding of what is required of them.

Workshops, regular refreshers, and easy access to the Code help maintain awareness and compliance.

It’s also important for management to lead by example. Employees are more likely to respect a code when they see leadership modelling the right behaviours.

A High-Profile Breach in Australia

In 2020, financial services company AMP faced significant backlash after its executives were found to have breached the company’s own Code of Conduct regarding workplace harassment. In fact, the firm was hit with 10 sexual harassment complaints in just two years. The fallout resulted in the resignation of top leaders and a severe blow to the company’s reputation.

This example highlights some very good reasons as to why a Code of Conduct is important – and not just having one, but enforcing it rigorously.

Common Scenarios of Unwitting Breach

It’s not always intentional actions, either. An employee might accidentally breach the Code of Conduct in several ways. For example, they may:

Share confidential information on social media without realising its sensitivity.
Engage in office gossip that inadvertently violates harassment policies.
Misuse company assets, such as using work equipment for personal projects.

There is no point having a Code of Conduct if the business doesn’t follow through on any breaches with appropriate disciplinary action. Consequences may range from verbal warnings to termination - depending on the severity of the breach and whether it’s repeated.