IDS HR Study 661, January 1999

Codes of conduct

• Looks at corporate codes of conduct which set out the standards expected from employees and provide specific guidance on how staff should behave.
• Considers what codes contain on subjects such as: gifts; entertainment and hospitality; conflicts of interest; and conduct towards other employees.
• Outlines the procedures for monitoring compliance and handling suspected violations.
• Five detailed case studies.

Corporate codes of conduct on ethical matters have become increasingly prevalent in the UK and the introduction of the legislation on whistleblowing is likely to make the issue even more prominent in 1999. This IDS Study examines this issue from the HR perspective concentrating on codes that clearly define standards of employee behaviour and provide specific guidance for the staff concerned.

There are two major reasons why organisations introduce a code of conduct. First, it is a statement about the integrity of an organisation, its values and the way it aims to conduct its business. Second, a code sets out the standards of conduct expected from employees and encourages them to behave responsibly.

Drawing on five detailed case studies of organisations which have introduced codes of conduct, the Study looks at the issues to be addressed when developing a code. It examines what corporate codes contain on subjects such as: accepting gifts; entertainment and hospitality; confidentiality; conflicts of interest; improper payments; and conduct towards other employees. The different ways in which the codes and their contents are communicated to staff are outlined, as are the procedures for monitoring compliance and handling suspected violations. The forthcoming legal protection for whistleblowers is summarised and some of the possible reporting procedures which could be adopted are also considered.