What is a code of ethics?

A code of ethics is a guiding set of principles intended to instruct professionals to act in a way that aligns with the organization’s values and benefits all stakeholders. A business’s code of ethics is drafted and tailored to the specific industry at hand, and it requires all business employees to adhere to it.

What is a business code of ethics?

Still, its general goal is to ensure that a business and its employees follow state and federal laws, conduct themselves according to exemplary standards, and benefit all stakeholders. Here are two types of codes of ethics commonly found in business. For all businesses, laws regulate issues such as hiring and safety standards.

Should a company have a code of ethics?

While a code of ethics is often not required, many firms and organizations adopt one to identify and characterize their business to stakeholders. This can build trust, ensure accountability, and demonstrate a commitment to ethical behavior, all of which can improve a company’s reputation and contribute to its success.