Code of Ethics

Followed or not, just about every large company and professional organization has a code of ethics that's meant to get everyone doing the right thing. The code might describe the company’s or organization’s values, how employees are supposed to behave and what to do when faced with particular ethical dilemmas. It could also spell out the penalties if the code of ethics is not followed.

Professions such as realtors, certified public accountants, Wall Street traders, bankers and financial advisors all have a code of ethics written by the trade organizations that issue their certifications. Rules for behavior are clearly defined and a person can lose their certification if the rules are broken.

Adam works for a large medical center doing fundraising. He can access patient data such as name, address and phone number, but the hospital’s code of ethics clearly states he is not allowed to look up data regarding the patient’s diagnosis, treatment, etc. The code also states the employee will be terminated if he or she is caught doing this. So, Adam resists the temptation to look up the records of his friends and relatives.

For some industries such as banking and investments, there are laws in place that guide their code of ethics and behavior. Since it’s crucial that these are followed, some companies hire a compliance officer to keep up to date on industry requirements, conduct training for all employees, and ensure rules are being followed.

A code of ethics can also contain a company’s commitment to preserving the environment or not doing business with foreign companies that use child labor or pay very low wages.