Lesson 4 Code of Conduct PDF

PROFESSIONAL code of ETHICS What is Code of Conduct? A code of conduct defines how a company’s employees should act on a day-to-day basis. It reflects the organization’s daily operations, core values and overall company culture. As a result, every code of conduct is unique to the organization it rep...

PROFESSIONAL code of ETHICS What is Code of Conduct? A code of conduct defines how a company’s employees should act on a day-to-day basis. It reflects the organization’s daily operations, core values and overall company culture. As a result, every code of conduct is unique to the organization it represents. Yet many companies struggle with how to write a great code of conduct and, as a result, their codes fall short. Writing a great code of conduct requires a thorough understanding of the company, its culture and vision. But no matter the company, all great codes of conduct share certain characteristics. A Code of Conduct is not the same as a Code of Ethics. A great code of conduct is:  Written for the reader. It is easy to understand and doesn’t include any technical or legal jargon.  Comprehensive. It covers all important details that may impact the daily lives of employees and answers common questions that arise.  Supported by leadership. It has been acknowledged and approved by the company’s senior management team. This is often demonstrated in the form of a foreword written by the CEO or President.  Accessible. It is available to all employees, current investors and potential investors.  Visually appealing. It follows a style that is clean and reflective of the organization. Below are 18 outstanding code of conduct examples that you can use to update or write your own. (A ✓ denotes a particularly exceptional feature of the code of conduct) Codes of ethics, which govern decision-making, and codes of conduct, which govern actions, represent two common ways that companies self-regulate. They are often associated with large companies, and provide direction to employees and establish a public image of good behavior, both of which benefits businesses of any size. 1 Code of Ethics: Sometimes referred to as a Value Statement, it behaves like the Constitution with general principles to guide behaviour; outlining a set of principles that affect decision-making. For example if an organization is committed to protecting the environment and “being green”, the Code of Ethics will state that there is an expectation for any employee faced with a problem, to choose the most “green” solution. It works on the bases of “treat others as you would like to be treated.” When faced with ethical dilemmas or debatable situations, what’s articulated in the Code of Ethics can help guide decision making. Code of Conduct: A particular rule in the Code of Ethics might state that all employees will obey the law, a Code of Conduct might list several specific laws relevant to different areas of organizational operations, or industry, that employees need to obey. The Code of Conduct outlines specific behaviours that are required or prohibited as a condition of ongoing employment. It might forbid sexual harassment, racial intimidation or viewing inappropriate or unauthorized content on company computers. Codes, along with other measures, have helped some companies dig themselves out of scandals, and have helped many companies build a healthier work climate and reputation. Similarities: Both a Code of Ethics and a Code of Conduct are similar as they are used in an attempt to encourage specific forms of behaviour by employees. Ethics guidelines attempt to provide guidance about values and choices to influence decision making. Conduct regulations assert that some specific actions are appropriate, others inappropriate. In both cases, the organization’s desire is to obtain a narrow range of acceptable behaviors from employees. Differences: With similarities, comes differences. Both are used in an attempt to regulate behavior in very different ways. Ethical standards generally are wide-ranging and non-specific, designed to 2 provide a set of values or decision-making approaches that enable employees to make independent judgments about the most appropriate course of action. Conduct standards generally require little judgment; you obey or incur a penalty, and the code provides a fairly clear set of expectations about which actions are required, acceptable or prohibited. Working Together: Bigger organizations sometimes have both Codes in separate formats, or they are sometimes combined into one general Ethics document that blends principles for the right action with a list of actions that are required or forbidden. For The Smaller Business: Many smaller businesses can survive without a formal code of ethics or code of conduct; for example if a business has 1-10 employees, generally everyone is talking with each other and interacting with each other every day. So communicating appropriate behaviour is much easier. However, as smaller businesses grow their employee numbers, ethical hazards and risks can increase, so having these documents can help shape cultural expectations about behaviour, and they also serve as a solid marketing tool for potential business partners or clients. Either way, whatever type of Code an organization chooses to employ, it’s critical that it is treated consistently in every instance of wrongdoing. The Code needs to apply to every employee from the ground up, and no matter how small the violation, appropriate discipline needs to take place. For example, if your Code stipulates that theft of company property is prohibited, and an employee takes home one pack of post-it-notes from the supply inventory, that’s theft, and should be treated as such. We believe that a great Code and a strong company culture is the heart of a successful organization. We strive to help organizations build a culture of integrity, transparency, and accountability. An organization’s culture is different in all industries: we believe there’s no one- size-fits-all solution for building and adopting a strong organizational culture. But we do strive to provide all organizations with a solution that can be customized to fit the varying needs of different organizations, while helping to build and strengthen internal cultures. One step in building a successful culture is with the integration of a strong compliance program, including 3 a whistleblower hotline. This is a powerful tool for any organization to implement in their proactive measures to ensure their business success and grow their strong culture where employees can thrive. How to Develop a Code of Conduct for Your Company Code of Conduct Defines the Significant Values and Beliefs of a Business A Code of Conduct is a written collection of the rules, principles, values, and employee expectations, behavior, and relationships that an organization considers significant and believes are fundamental to their successful operation. A Code of Conduct enumerates those standards and values that make an organization remarkable and that enable it to stand out from similar organizations. The Code of Conduct is named by an organization to reflect the culture that is present in the organization and to make a statement. The written code of conduct provides guidance for employees, customers, and any other stakeholders as to what is deemed most significant, valued, and desirable in relationships, interactions, and the organization's worldview. The Purpose of the Code of Conduct While Code of Conduct is a popular title for this written document and its series of expectations, other companies call it their Code of Business Ethics, Code of Ethical Business Conduct and Code of Ethics and Standards. The last is popular in professional associations. No matter what an organization calls it, the Code of Conduct serves as a framework for ethical decision making within an organization. The Code of Conduct is a communication tool that informs internal and external stakeholders about what is valued by a particular organization, its employees, and management. The Code of Conduct is the heart and soul of a company. Think of a Code of Conduct as an in- depth view of what an organization believes and how the employees of an organization see themselves and their relationship with each other and the rest of the world. The Code of Conduct 4 paints a picture of how employees, customers, partners, and suppliers can expect to be treated as a result. Development of the Code of Conduct All sorts of organizations develop a Code of Conduct. Companies develop a Code of Conduct to promulgate principles and ethics that will make them attractive to customers, employees, and other stakeholders. Non-profits create a Code of Conduct for these reasons and to ensure that employees and clients understand and trust their mission of service. Professional associations develop Codes of Conduct for similar reasons and to suggest standards for ethical behavior across an industry and in the professional behavior of its members. Several examples of a Code of Conduct were so powerful in guiding the behavior, standards, and ethics of an organization that they became famous in and of themselves. At Johnson & Johnson, for example, Robert Wood Johnson, company chairman from 1932 to 1963 and a member of the organization's founding family, wrote their famous Credo in 1943. William Hewlett and David Packard long managed Hewlett-Packard (HP): The HP Way. A Code of Conduct can also be a document that details an organization's expectations and requirements of their vendors, suppliers, and partners. Also commonly called a supplier code of ethics, the Code of Conduct lays the groundwork for the organization's relationship with its partners. For example, Apple's (and the Electronics Industry's) Supplier Code of Conduct states that "Apple is committed to ensuring that working conditions in Apple's supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible." Another frequent component of the Code of Conduct for suppliers is that they are discouraged from offering gifts to employees who, by their Code of Conduct, are unable to accept them lest there be any questionable use of their services. 5 Develop and Integrate the Code of Conduct A Code of Conduct is written by an executive team; developed by a cross-section of employees from various functions; or designed by organization development, corporate communications, marketing, supplier relationships, and/or Human Resources staff, depending on the organization and its internal mode of operation and management style. A Code of Conduct that is developed either by a powerful, esteemed executive, often also the owner, or by a cross-section of employees sans such an executive's influence, is easier to incorporate and integrate. It is more likely to affect the actual beliefs and operation of an organization. The Code of Conduct will more likely achieve full implementation and integration within the organization when more stakeholders are involved in its creation. Like the process recommended for the development, alignment, and communication of an organization's values or the integration of a strategic plan, participation contributes to the successful integration of a Code of Conduct. Use these same recommended steps for your process to develop your Code of Conduct. Disseminate the Code of Conduct A Code of Conduct is published and disseminated to its employees, and to existing and potential stakeholders such as members of the board of directors, customers, partners, vendors, suppliers, potential employees, and the general public. It is the image that the company wants to convey to these stakeholders about who the company is and what these stakeholders can expect in terms of value-driven treatment. Frequently posted on the organization's website and in their annual report to shareholders, the Code of Conduct is both an internal commitment to a standard of behavior and beliefs and a public declaration of the organization's position on a set of standards, values, principles, and beliefs 6 Key principles of Code of Conduct SEPPIC implements an employee Code of Conduct. This code of conduct is intended for all the employees to help them develop their activities while respecting SEPPIC’s ethical principles. In compliance with local uses and regulations, they are based on 10 fundamental themes. Respect for laws and regulations SEPPIC upholds the highest standards in how it runs its activities, notably by respecting human rights, labor laws and the environment. In professional activities, each SEPPIC employee must demonstrate integrity and abide by applicable laws and regulations under all circumstances. Respect for people The safety of its employees is a priority for SEPPIC. Safety should never suffer from the search for efficiency. Safety and health in the workplace Each employee has the right to work under safe and healthy conditions, and the duty to contribute to them by responsible behavior. Safety policy extends to all employees, subcontractors and service providers. Each employee must exercise their professional activity in abiding by the safety, hygiene and health rules applicable in his or her workplace and participating in appropriate training sessions that might be planned in these areas. Prevention of discriminatory actions SEPPIC is determined to offer personnel equal opportunities for recognition and career advancement, whatever their origins, gender, beliefs or physical condition and will not tolerate any form of discrimination, or harassment. 7 Respect for third parties Each employee must help respect commitments made with SEPPIC partners, in particular, customers, suppliers and public authorities, and must also demonstrate objectivity and fairness in their treatment. Respect for the environment Respect for the environment and the preservation of natural resources in its operations and those of its customers is a major priority of SEPPIC. It is up to each employee, in the limit of its functions, to contribute to the efforts and commitments of SEPPIC by respecting application regulations and SEPPIC procedures regarding environmental protection. Respect for competition law regulations Competition law is applicable to every aspect of a company’s commercial activity: negotiations with customers and suppliers, contacts with competitors, marketing and sales promotion. The following, in particular, are prohibited: any agreement or even discussion with competitors concerning price-setting or other transaction conditions, production capacity, the distribution of customers or commercial zones. It is up to each SEPPIC employee to respect the competition law as violating rules can cause the company, its employees and its shareholders to incur serious risks. The law stipulates penalties that can be very significant for private individuals or extremely damaging to legal entities and may seriously undermine a company’s reputation. 8 Respect for rules on insider trading Any employee with information that, if made public, could influence the Stock Exchange price of the Air Liquide share must keep this information confidential and must not undertake, or recommend that a third party undertake or have undertaken, any operations on Air Liquide shares. The employee concerned must abide by the measures in the memorandum on the prevention of insider trading issued by the L’Air Liquide S.A. Legal Department. Prevention for conflict of interest Each employee must commit to avoiding any situation that involves a conflict between his or her personal interests and those of SEPPIC. Links to a competitor, customer or supplier For example, a case where an employee may work simultaneously for a customer, supplier or competitor or holds a major interest in these latter, either directly or indirectly. Any employee who could potentially be in a conflict of interest is encouraged to inform his or her immediate supervisor of this situation. Respect for rules on corruption It is prohibited to pay for, offer or grant unwarranted advantages, in any form whatsoever, directly or through an intermediary, to a private party or a representative of the public authorities in any country, with the purpose of obtaining favorable treatment or influencing the outcome of a negotiation in which SEPPIC is involved. Payments, gifts and advantages No employee may accept from a competitor, customer or supplier of SEPPIC or offer to these latter any illegal/inappropriate payment, or gifts or other types of advantages. An exception can 9 be recognized for gifts or invitations of low value that are not paid in cash and are in keeping with current commercial practices and do not violate any laws or regulations. Protection of SEPPIC activities Each employee must properly protect and maintain confidential any strategic, financial, technical or commercial data or documents that are not public and whose disclosure to third parties could be harmful to the interests of SEPPIC. Protection of information Likewise, information concerning a named person, both professional and involving private life, is confidential and must be subject to all the precautions needed to prevent inaccurate or inappropriate modification or disclosure The duty to maintain confidentiality also applies to information provided by SEPPIC’s partners and customers. It is up to each SEPPIC employee to respect these rules on the protection of information. This duty on confidentiality continues even after the departure of an SEPPIC employee. Protection of property and resources Each employee is responsible for the proper use and protection of SEPPIC property and resources such as intellectual property rights, installations, equipment and financial resources or cash. These resources and property must be used in accordance with their professional purpose and in the established framework. They may not be used for personal ends except if explicit authorization has been granted by a duly authorized individual in the framework of established procedures. Lastly, it is the responsibility of each employee to protect the property and resources of SEPPIC against any damage, inappropriate alteration, fraud, loss or theft. 10 Transparency and integrity of information SEPPIC strives for the greatest transparency and the highest standards of integrity and reliability of the financial, accounting and management information that is treated or communicated. Each employee who takes part in the production, analysis, filing or communication of this information must carry out these operations honestly and transparently. Internal control and audit Internal control systems set up within SEPPIC (respect for laws, regulations, policies or procedures, asset protection and reliable financial information) help control its activities, operational efficiency and the efficient use of its resources. Compliance with laws, regulations, policies or procedures, protection of assets, and reliability of financial information are particularly relevant in this area. Each SEPPIC employee must contribute to the efficiency of the internal control systems and cooperate with the internal or external audits (that are involved in the evaluation of these systems), especially by showing diligence and transparency in satisfying any requests for information. Implementation of the code of conduct If there is any doubt about the interpretation or application, in a given situation, of the rules presented in this document. 11  BCS Code of Conduct The BCS code of conduct serves as a unique and powerful endorsement of your professional integrity. Observed by every BCS member, it defines the characteristics we share as practitioners serious about building a responsible computing profession. By signing up to the code when you join BCS, you show your commitment to working in the public interest - you accept your professional duty. It's the very foundation of our profession, built upon every day by the competence, integrity and diversity of our members. The code comprises four key principles: You make IT for everyone Working together to address issues in your profession and in wider society, you want everyone to have access to IT. You share what you know, uphold standards and conduct yourself professionally and fairly at all times. PUBLIC INTEREST You shall: 1. have due regard for public health, privacy, security and wellbeing of others and the environment; 2. have due regard for the legitimate rights of third parties; 3. conduct your professional activities without discrimination on the grounds of sex, sexual orientation, marital status, nationality, colour, race, ethnic origin, religion, age or disability, or of any other condition or requirement; 4. promote equal access to the benefits of IT and seek to promote the inclusion of all sectors in society wherever opportunities arise. Show what you know, learn what you don't You have integrity and show competence, but you know you don’t know everything, that’s why you continuously learn and grow and never take on tasks that you don’t have the skills and resources to complete. 12  PROFESSIONAL COMPETENCE AND INTEGRITY You shall: 1. only undertake to do work or provide a service that is within your professional competence; 2. NOT claim any level of competence that you do not possess; 3. develop your professional knowledge, skills and competence on a continuing basis, maintaining awareness of technological developments, procedures, and standards that are relevant to your field; 4. ensure that you have the knowledge and understanding of legislation and that you comply with such legislation, in carrying out your professional responsibilities; 5. respect and value alternative viewpoints and seek, accept and offer honest criticisms of work; 6. avoid injuring others, their property, reputation, or employment by false or malicious or negligent action or inaction; 7. reject and will not make any offer of bribery or unethical inducement. Respect the organization or individual you work for You work with due care and diligence, acting in your client or company’s best interests at all times. You take personal and collective responsibility for your actions while maintaining discretion and ethical standards. DUTY TO RELEVANT AUTHORITY You shall: 1. carry out your professional responsibilities with due care and diligence in accordance with the relevant authority’s requirements while exercising your professional judgement at all times; 2. seek to avoid any situation that may give rise to a conflict of interest between you and your relevant authority; 13  accept professional responsibility for your work and for the work of colleagues who are defined in a given context as working under your supervision; 3. NOT disclose or authorise to be disclosed, or use for personal gain or to benefit a third party, confidential information except with the permission of your relevant authority, or as required by legislation; 4. NOT misrepresent or withhold information on the performance of products, systems or services (unless lawfully bound by a duty of confidentiality not to disclose such information), or take advantage of the lack of relevant knowledge or inexperience of others. Keep IT real. Keep IT professional. Pass IT on As a BCS member, you’re an ambassador for the IT industry and use your voice to help promote it positively to the world. You support your IT colleagues and other members in their growth both personally and professionally. DUTY TO THE PROFESSION You shall: 1. accept your personal duty to uphold the reputation of the profession and not take any action which could bring the profession into disrepute; 2. seek to improve professional standards through participation in their development, use and enforcement; 3. uphold the reputation and good standing of BCS, The Chartered Institute for IT; 4. act with integrity and respect in your professional relationships with all members of BCS and with members of other professions with whom you work in a professional capacity; 5. notify BCS if convicted of a criminal offence or upon becoming bankrupt or disqualified as a company director and in each case give details of the relevant jurisdiction; 6. encourage and support fellow members in their professional development. 14 What to Include Your Code of Ethics and Professional Conduct: A code of ethics and professional conduct consists of four key sections detailed below. You can cover all of them in a short summary Code of Ethics and Professional Conduct as we have above, or expand on them in detail so employees are clear on how to handle many common situations. 1. The work environment. Employees should act with integrity, comply with laws, maintain a professional work environment and comply with company policies. They should treat customers, colleagues, and partners ethically at all times. Work Environment Code of Conduct Topics:  Equal opportunity.  Discrimination and harassment.  Violence policy.  Safety policy.  Substance abuse.  Gambling policy.  Privacy policy.  Misconduct explanation and policy. 2. Conflicts of interest. A company's reputation depends on the actions and integrity of its employees. It is essential that they avoid relationships and activities that hurt, or appears to hurt, their ability to make objective and fair decisions. 15 Conflict of Interest Code of Conduct Topics:  Corporate asset contributions.  Running for public office.  Insider trading and financial interests.  Investments in companies employees do business with.  Employee political interests.  Significant financial interests in other companies.  Securities transactions.  Taking out loans. 3. Protecting company assets. Employees should always act to protect company assets, including physical, intellectual, and electronic or digital properties. Company Assets Code of Conduct Topics:  Preparing, maintaining, and disclosing accurate records.  Information security.  Protecting communication and information technology systems. 16   Protecting external communications.  Use of company property.  Use of property owned by others.  Facility security.  Protecting intellectual property. 4. Anti-bribery and corruption. A company's integrity is essential for maintaining trustworthiness and reputation. Employees should always do their work fairly, honestly, and legally. Anti-Bribery and Corruption Code of Conduct Topics:  Doing business with governments.  Choosing and maintaining service providers.  Receiving gifts and entertainment.  Loans, bribes, and kickbacks.  Relationships with former employees.  Obligations of departing and former employees.  Interaction with competitors.  Relationships with affiliates, international entities, and customers. 5. Attendance and punctuality. Employees are expected to be regular and punctual in attendance. This means being in the office, ready to work, at starting time each day. Absenteeism and tardiness burdens other employees and the company. 17 6. Absence without notice. Employees who are unable to work due to illness or an accident should notify their supervisor. This allows the company to arrange for coverage of their duties, and helps others continue to work in their absence. If an employee does report for work and the company is not notified of an employee's status for 3 days, it is typically considered a job abandonment. 7. General harassment and sexual harassment. This company is committed to providing a work environment free of discrimination and unlawful harassment. Actions, words, jokes, or comments based on an individual’s sex, race, ethnicity, age, religion, or any other legally protected characteristic are not tolerated. 8. Cell phone use at work. Personal cell phone usage during work hours is discouraged, except in extreme cases such as an emergency. 9. Dress code. A professional appearance is important when employees work with with customers or potential customers. Employees should be well groomed and dressed appropriately for the business and for their position. 10. Substance abuse. The manufacture, distribution, possession, sale, or purchase of controlled substances of abuse on company property is prohibited. Being under the influence of illegal drugs, alcohol, or substances of abuse on company property is prohibited. Working while under the influence of prescription drugs that impair performance is prohibited. 11. Tobacco products. The use of tobacco products on company property, outside of permitted areas, is specifically prohibited. 18 12 Internet use at work. Employees may use the Internet when appropriate to access information needed to conduct business company business. Use of the Internet must not disrupt or injure the company computer network. Use of the Internet must not interfere with an employee's productivity. How to Write a Code of Ethics and Code of Conduct: 1. Review your mission statement and core values. The goal of a code of ethics is to help employees make decisions that are in line with what the company or organization values. This should be distilled into your mission statement and core values, so it's a good place to start. 2. Talk to stakeholders. What do management, employees, and clients think are the most important values of the company to uphold? Get input from everyone involved to be sure your code reflects what the company stands for. You can have them all look at a code of conduct template to get ideas for how their own might look like. 3. Review past ethical issues. Where has your company faltered with ethics in the past? Where has it shined? Call attention to problem areas and reinforce the strengths you already have. 4. See where other companies have faltered. Have other companies in your industry had recent ethical failures? Avoid the same pitfalls by covering these issues in your code. 5. Create a draft code for input and discussion. Give everyone a chance to help decide on the contents of the code of ethics by inviting them to discuss and give input on a draft. 19 6. Create a final draft and share it. Once you've got a final draft approved, share it throughout the organization. Also, make sure that a copy of it is added to your employee handbook. Code of Ethics and Professional Conduct Examples: Alphabet Employees of Alphabet and its subsidiaries and controlled affiliates (“Alphabet”) should do the right thing – follow the law, act honorably, and treat co-workers with courtesy and respect. Hersey No matter what job you do or where you do it, you are Hershey. Think about that as you watch over every business relationship, every transaction, and every product, and make sure your actions always reflect our values. Starbucks Starbucks empowers all partners to make decisions that impact our reputation. Individual actions at work shape how the world views Starbucks, which is why it’s so important that we each take responsibility for Our Starbucks Mission and acting ethically in all situations. Under Armour Make the Right Call. It’s as simple as it sounds. Whenever you’re faced with a decision—big or small—always do what you know is ethically right, and, of course, always follow the law. 20 Verizon We know that bigness is not our strength, best is our strength. Bureaucracy is an enemy. We fight every day to stay “small” and keep bureaucracy out. Is a code of ethics really important for your business to have? At what point should you get one? You may be wondering this, especially if you work for a smaller business or organization. The Importance of a Code of Ethics: A code of ethics is important because it helps employees or organization members make decisions that are in line with company values in the absence of a clear rule or direct supervision. A code of ethics can improve decision making at a business, and make it easier for employees to be autonomous. Code of Ethics and Professional Conduct FAQs: How is the code of ethics definition different from a code of conduct definition? A code of ethics, or professional code of ethics, is usually a set of general guidelines or values. A code of conduct policy is typically more specific, giving guidelines for how to respond in certain situations. A code of conduct example would be a rule expressly prohibiting accepting or offering bribes. Where can I find professional code of conduct examples?  Alphabet (Google's parent company).  Coca-Cola. 21   Hershey.  Starbucks.  Facebook.  Under Armour.  Microsoft. How can I make an employee code of conduct meaningful? If you're creating a new code of conduct for employees, involve them completely in the creation of it. Also, review it each year, giving new employees a chance to have a say in how it evolves. Periodic code of conduct training will also help keep it fresh for employees. 22