What a Code of Ethics Does

A Code of Ethics sets out the standards of behavior an organization expects from everyone, based on its core ethical values. In simple terms, it describes how work is done within the organization. It also outlines the organization’s obligations and responsibilities to its employees, customers, investors, and other stakeholders.

An effective Code of Ethics connects the organization’s purpose (why we are in business) with its ethical values (how we will achieve our goals). This link is crucial—it ensures ethics are embedded into the organizational culture and influence decision-making at every level.

When this connection is clear, the Code becomes more than just a document—it actively promotes the behaviors and attitudes the organization wants to see in practice.