Codes of ethics are guidelines to the moral principles or values used by the organisations to steer conduct, both for the organisation itself and its employees, in all business activities.

Checklist

1. Secure the commitment of top management - Without commitment from top management, a code will not be taken seriously by employees.

2. Gain organisational agreement on the primary purpose of a code -Is the code mainly for the benefit of employees, or is it to be directed at all stakeholders including non executive directors, shareholders and even customers. Be clear on your major objectives and be aware of all the changes that such a code may imply, from a shift in the organisation's culture to whistle-blowing.

3. Identify and define existing sources of values within the organisation - Gain a consensus about the organisations traditions and unwritten rules.

4. Involve your employees - This is best achieved in a small group, drafting the code should be a dynamic process, don't exclude comments from employees at any level.

5. Prepare a draft code which should include the following:

Introduction explaining code's purpose.
Definition of mission and objectives.
Guidance on handling relations with stakeholders, employees, shareholders, suppliers, customers etc.
Expectations about proper behaviour.
Operating principles.
Mechanism to resolve employee's questions.

6. Circulate the draft - Seek feedback and comments. In addition to generating additional ideas, this process reinforces staff awareness of code.

7. Devise an implementation strategy - Implementation should be carried out with purpose, sensitivity and consideration.

8. Circulate the final code widely - Send to all employees

9. Establish a procedure for questions concerns and complaints - Make it clear who is responsible for handling these.

10. Monitor and evaluate the code - Establish mechanism to monitor and evaluate code's effectiveness.

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Do's and Don'ts:

Do's:

Make sure code reflects organisation's own values and traditions.

Seek employee input at all stages.

Use plain language to write the code

Don't:

Make the code too vague or narrowly prescriptive.

Impose new or inappropriate values on the organisation.

Create an expectation gap between the principles of the code and the behaviour of the organisation in practice.

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