Code of Ethics and Code of Conduct are the standards that a group must adhere to, so as to remain the member of the organization. These documents are formally addressed and need to be accepted by the members, when they join the organization for the first time. These help the business enterprise in regulating the business efficiently. The primary difference between code of ethics and code of conduct is that code of ethics is a set of principles which influence the judgement while the code of conduct is a set of guidelines that influence employee’s actions.
Content: Code of Ethics Vs Code of Conduct
Comparison Chart
| Basis for Comparison | Code of Ethics | Code of Conduct |
|---|---|---|
| Meaning | An aspirational document, issued by the board of directors containing core ethical values, principles and ideals of the organization is Code of Ethics. | A directional document containing specific practices and behavior, that are followed or restricted under the organization is Code of Conduct. |
| Nature | General | Specific |
| Scope | Wide | Narrow |
| Governs | Decision making | Actions |
| Length | Short | Comparatively longer |
| Disclosure | Publicly disclosed. | Employees only. |
| Focused on | Values or principles | Compliance and rules |
Definition of Code of Ethics
Code of Ethics is a document issued by the top level management, which consist of a set of principles, designed to guide the members of the organization to carry out business honestly and with integrity. It describes the core values of the organization that guides the decision-making. It provides ethical standards which are to be followed by the members. It sets out general guidelines to assist individuals apply their judgment, concerning a suitable behavior in a given situation.
Code of ethics helps members in understanding what is right or wrong. The codes are disclosed publicly and hence addressed to the interested parties to know the way the company does business. Violation of the code of ethics by any member may result in termination or dismissal from the organization.
Definition of Code of Conduct
Code of Conduct is a document that expresses the practices and behavior of a person, required or restricted as a condition for becoming a member of the organization or a profession. The code sets out the actual rules, so it lays down the do’s and don’t s of an employee. The members are responsible for its adherence and held accountable for its violation.
Every organization has its code of conduct issued by the Board of Directors (BOD) that determines the social norms, regulations and responsibilities. It is in the form of written statement, that contains rules for behavior, which are supposed to be followed by the employees of the company. The document directs and guides the employees in various matters.
Key Differences Between Code of Ethics and Code of Conduct
The major differences between code of ethics and code of conduct are described in the given below points:
- Code of Ethics is an aspirational document, issued by the board of directors containing core ethical values, principles and ideals of the organization. Code of Conduct is a directional document containing specific practices and behavior, that are followed or restricted under the organization.
- Code of Ethics is general is general in nature, whereas code of conduct is specific.
- Code of Conduct are originated from the code of ethics and it converts the rules into specific guidelines, that must be followed by the members of the organization.
- Lengthwise, code of ethics is a shorter document than a code of conduct.
- Code of Ethics regulates the judgment of the organization while a code of conduct regulates the actions.
- Code of Ethics is publicly available, i.e. anyone can access it. Conversely, Code of Conduct is addressed to employees only.
- Code of Ethics focuses on values or principles. On the other hand, Code of Conduct is focused on compliance and rules.
Conclusion
Code of Conduct is actually extracted from the Code of Ethics. Therefore, the latter concept is wider than the former. Moreover, these codes are beneficial for businesses of any size and nature as the codes lays down direction which are helpful for employees, to behave in a particular manner and also making a public image of ethical behavior.
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