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Difference between code of ethics and code of conduct

Code of ethics and code of conduct are the standards to which a group must adhere, in order to remain a member of the organization. The main difference between the code of ethics and the code of conduct that the ethical code a set of principles that influence judgment while the Code of Conduct a set of guidelines that influence employee actions.

These statements are formally addressed and must be accepted by members when they join the organization for the first time. These help the firm to regulate the business efficiently. While the code of conduct is something that affirms organized values, the code of ethics used to observe the ethical norms and foundations of the rules of conduct. Check out the article to learn more about these two topics.

Comparative chart

Basis for the comparison Ethical Code Code of conduct
SenseAn ambitious document, issued by the board of directors which contains fundamental ethical values, principles and ideals of the organization, the Code of Ethics.A management document containing specific practices and behaviors, which are followed or limited by the organization, the Code of Conduct.
NatureGeneralSpecific
PurposeWideStrict
rulingDecision makingActions
LengthShortComparatively longer
RevelationPublicly disclosed.Employees only.
Focused onValues ​​or principlesCompliance and rules

Definition of the Code of Ethics

The Code of Ethics is a document issued by higher level management, consisting of a series of principles, designed to guide the members of the organization to carry out their activities honestly and with integrity. It describes the fundamental values ​​of the organization that guides the decision-making process. It provides ethical standards that must be followed by members. It establishes general guidelines to help people apply their judgment regarding appropriate behavior in a given situation.

The code of ethics helps members understand what is right or wrong. The codes are publicly disclosed and therefore addressed to interested parties to know how the company operates. Violation of the code of ethics by any member may result in termination or dismissal from the organization.

Definition of the code of conduct

Code of Conduct A document that expresses a person's practices and behavior, required or limited as a condition for becoming a member of the organization or profession. The code establishes the actual rules, then establishes the actions and not an employee. Members are responsible for its membership and are held responsible for its violation.

Each organization has its own code of conduct issued by the Board of Directors (BOD) which determines social norms, regulations and responsibilities. in the form of a written declaration; which contains rules for behavior, which should be followed by company employees. The document directs and guides employees in various matters.

Key differences between the code of ethics and the code of conduct

The main differences between the code of ethics and the code of conduct are described in the following points:

  1. The Code of Ethics is an ambitious document, issued by the board of directors which contains fundamental ethical values, principles and ideals of the organization. Code of Conduct a management document containing specific practices and behaviors, which are followed or limited by the organization.
  2. The general Code of Ethics of a general nature, while the specific code of conduct.
  3. The Code of Conduct originated from the code of ethics and converts the rules into specific guidelines, which must be followed by members of the organization.
  4. Lengthwise, the code of ethics is a shorter document than a code of conduct.
  5. The Code of Ethics regulates the organization's judgment while a code of conduct regulates actions.
  6. The publicly available Code of Ethics, that is, anyone can access it. Conversely, the Code of Conduct addressed exclusively to employees.
  7. The Code of Ethics focuses on values ​​or principles. On the other hand, the Code of Conduct focused on compliance and rules.

Conclusion

The Code of Conduct actually extracted from the Code of Ethics. Therefore, the latter broader concept than the previous one. Furthermore, these codes are advantageous for companies of any size and nature, since the codes establish a direction that is useful for employees, to behave in a particular way and also to make a public image of ethical behavior.