Code of Conduct: What to Include and How to Implement One

Author: Ian Aldridge, Progressive Legal

With the continuously shifting business environment of the present day, the significance of preserving an ethical and harmonious workplace cannot be overemphasised. A properly structured code of conduct stands out as one of the essential instruments in attaining this goal.

We are going to dissect the term “code of conduct” at work in Australia here. What a code of conduct is, its importance to the business world, and the means of its efficient implementation will be our topics of discussion.

What is a code of conduct?

A code of conduct, often referred to as a workplace code, is a set of guidelines and principles that outline the expected behaviour and ethical standards within an organisation.

It serves as a roadmap for employees, ensuring they understand what is acceptable and unacceptable behavior while representing the company.

The importance of a code of conduct

The importance of having a code of conduct for your business cannot be overstated. While legal requirements may vary depending on your specific industry and location, we strongly advise implementing a workplace code for your business, even when not legally mandated.

One of the main functions of a code of conduct is to be an explicit manifestation of the principles that your company aims to instil in its managers and staff, which are reflected in the spoken words and behaviours. The company code, hence, becomes the level at whereby the firm and the staff’s output can both be judged. Let’s take a deeper look at why a workplace code is so important:

Promoting Ethical Behaviour

A code of conduct is essentially aimed at leading the way for morally acceptable behaviour in the work environment. It spells out the company’s core values and what is expected of the employees, thus assisting workers in making the right choices.

Creating a Positive Work Environment

An efficiently designed code of conduct contributes to the creation of a positive work setting where the principles of respect, justice, and equal treatment are observed. Through the code of conduct, the employees are made aware of mutually respectful communication.

Compliance with Laws and Regulations

In Australia, businesses are subject to a wide range of laws and regulations governing various aspects of employment, such as the Fair Work Act 2009. A code of conduct helps ensure that the organisation and its employees comply with these legal requirements.

Protecting Reputation

The reputation of a business is the costliest treasure that it holds. A robust internal code is one of the ways that the company can keep its reputation safe from going down by eliminating the misconduct of the staff and the resultant legal problems.

Competitive Edge

With the rise of a market that is sensitive to social and environmental issues, customers and partners are more willing to do business with companies that focus on ethical practices. Your business can get a competitive advantage through the use of a code of conduct that is well-known and accessible to everyone.

Key elements to include in your code of conduct

When drafting your code of conduct, it’s essential to cover various aspects to ensure a comprehensive guideline for your business. Here are the key elements that should be included:

1. Compliance with Legislation

Ensure that all employees adhere to relevant laws and regulations applicable to your industry.

2. Commitment to High Standards

Emphasise your business’s dedication to upholding high ethical and professional standards.

3. Honesty and Integrity

Stress the importance of honest and ethical behavior in all business dealings.

4. Care and Diligence

Encourage employees to perform their tasks with care, attention, and a commitment to quality.

5. Job Description Compliance

Outline the expectations for employees to fulfill their job descriptions and responsibilities.

6. Policies and Procedures

Require employees to abide by the company’s established policies and procedures.

7. Respect and Courtesy

Promote a culture of respect and courtesy among employees.

8. Anti-Bullying and Harassment

Explicitly state the company’s stance against bullying and harassment in the workplace.

9. Compliance with Requests

Instruct employees to fulfill lawful and reasonable requests from superiors.

10. Ethical Workplace Behavior

Encourage ethical conduct in all workplace interactions.

11. Confidentiality and Privacy

Emphasise the importance of maintaining confidentiality and complying with privacy policies.

12. Conflict of Interest

Instruct employees to avoid or disclose conflicts of interest.

13. Proper Use of Business Property

Specify the appropriate use of company property and resources.

14. Unbiased Workplace

Promote an environment free from bias, discrimination, and prejudice.

15. Truthfulness

Prohibit the dissemination of false or misleading information.

16. Responsible Use of Authority

Discourage the misuse of information, power, or authority.

17. Information Use

Ensure that information is used appropriately and responsibly.

18. Business Benefit

Encourage actions that benefit the business and its stakeholders.

19. Upholding Reputation

Stress the importance of upholding the business’s core values and maintaining a good reputation, both in Australia and overseas.

20. Disciplinary Actions

Specify the consequences and disciplinary actions for any violations of the code of conduct.

Including these elements in your workplace code will provide clear guidance to your employees and help create a workplace culture that values ethics, integrity, and professionalism.

At Progressive Legal, our experienced workplace lawyers specialise in implementing these elements into a tailored code of conduct unique to your business and its values. Request our advice below for a professionally drafted workplace code.

Best practices when implementing a code of conduct

It takes careful thought and attention to detail to outline an effective code of conduct. If you want your workplace code to be effective, you have to follow best practices such as these:

Inclusivity

Get employees at different levels of the organisation involved in the creation process. Poll different departments and people with different backgrounds to make sure that the workplace code you have reflects the different viewpoints that exist in your workplace.

Clarity and Simplicity

Make the code of conduct a document with clear and simple language that can be understood by all employees. Do not use jargon or terms that have a legal meaning and that may confuse or intimidate the readers of the code.

Customisation

Create a behaviour standard that matches the values and necessities of your organisation. Even though there are universally accepted principles, a code of conduct at your workplace should be a reflection of the company culture and the nature of the business.

Legal Review

Make sure that with the help of our specialist employment lawyers that your code of conduct is in line with the laws and regulations in Australia. Taking this step is important to be free of legal troubles.

Training and Education

Train all employees extensively on the workplace code to which they are acquainted. They must grasp not only the text but also the logic of each moral.

Accessibility

Have a behaviour standard readily available for all members of staff. Think of giving it in both digital and printed forms and make it accessible on your company’s intranet or website.

Regular Review and Update

Since the business environment is constantly changing, ethical problems may also change accordingly. Review your code of conduct regularly and update it if necessary, to reflect any new issues and to make sure that it is still applicable.

Lead by Example

It is leadership that must set the example by, among other things, always showing that the code of conduct is followed. When employees notice that leaders are operating according to high ethical standards, they, in turn, are more inclined to do likewise.

Whistleblower Protection

Provide easily understandable ways for employees to report any breaches of rules. Also, guarantee that those reporting will not face any kind of punishment. Such a situation gives employees the courage to express their concerns.

Continuous Communication

Openly communicate the code of conduct. Create a culture in which employees dare to talk about ethical problems and ask for advice.

Through the implementation of these best practices, you are able to produce a workplace code that not only complies with regulatory requirements but also assists in the establishment of a work culture of integrity, trust, and ethical conduct.

Keep in mind that a thoroughly designed code of conduct is your organisation’s living document and is always changing with the ethical landscape. It is a valuable resource for your employees and proof of your commitment to ethical business practices.

Key Takeaways 

An effectively organised code leads your company to ethical perfection, observance of laws, and a culture of honesty. By including the core components talked about and following the conventions, your local code of work becomes a worthy tool, producing the virtues of trust, respect, and the spirit of the workplace.

If you want a locally developed employee code of conduct that perfectly matches your business requirements and brings you the highest advantage, contact Progressive Legal today. Our experienced workplace lawyers are here to assist you in creating a robust and effective workplace code that aligns with your business objectives and values.

Take the first step towards a more ethical and successful workplace by contacting us now on 1800 820 083 or by requesting our expert advice below. Your business deserves the best, and we are here to deliver. it. 

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