A code of conduct is a set of rules outlining the responsibilities of, or proper practices for, an individual, party or organization. Related concepts include ethical, honor and moral codes, as well as halachic and religious laws.
In its 2007 International Good Practice Guidance, "Defining and
Developing an Effective Code of Conduct for Organizations", the
International Federation of Accountants[1]
provided the following working definition:
"Principles, values,
standards, or rules of behavior that guide the decisions, procedures and
systems of an organization in a way that (a) contributes to the welfare of its
key stakeholders, and (b) respects the rights of all constituents affected by
its operations."
A common code of conduct is written for employees of a company, which
protects the business and informs the employees of the company's expectations.
It is ideal for even the smallest of companies to form a document containing
important information on expectations for employees. The document does not need
to be complex or have elaborate policies, but the file needs a simple basis of
what the company expects from each employee.