10 Tips for Writing an Amazing Code of Ethics

A code of ethics is more than just a formality. If executed properly, it's a tool to help employees better internalize core company values and base their behavior and conduct on the principles outlined.

What Is a Code of Ethics? (With Example)

A code of ethics is a formal document that outlines the principles and moral values an organization expects its employees, leaders, and stakeholders to uphold. It serves as a guiding framework for decision-making, behavior, and professional integrity across the company.

Many organizations use a code of ethics to set expectations around honesty, fairness, responsibility, and respect. It goes beyond legal compliance by embedding core ethical standards into daily operations.

Code of Ethics vs. Code of Conduct

While the terms are often used interchangeably, there’s a key distinction between a code of ethics and a code of conduct and ethics:

• A code of ethics defines an organization’s values and ethical principles.
• A code of conduct provides specific rules and guidelines for behavior in different scenarios.
• Think of the code of ethics as the "why" and the code of conduct as the "how."

Code of Ethics Example

• Purpose: This Code of Ethics outlines the values and principles that guide our organization’s decision-making, actions, and relationships with stakeholders. It serves as a foundation for ethical behavior, integrity, and accountability across all levels of the company.
• Scope: This policy applies to all employees, officers, board members, contractors, and third-party representatives acting on behalf of the organization.

Core Ethical Principles

• Integrity and Honesty: We are committed to conducting business in a truthful and transparent manner. Employees must not engage in fraud, misrepresentation, or deception in any form.
• Respect for Others: We maintain a work environment where everyone is treated with dignity and fairness. Discrimination, harassment, and retaliation will not be tolerated.
• Confidentiality: We protect sensitive information about our business, employees, clients, and partners. Confidential information must not be shared or used for personal gain.
• Compliance with Laws and Regulations: We adhere to all applicable local, national, and international laws and industry regulations. Employees are expected to report any known or suspected violations.
• Avoidance of Conflicts of Interest: Employees must avoid situations where personal interests could conflict with their professional responsibilities. All potential conflicts must be disclosed to management.
• Accountability and Reporting: We hold ourselves accountable for our actions and decisions. Employees are encouraged to report unethical behavior or policy violations through designated reporting channels without fear of retaliation.

Application and Enforcement

All employees are expected to review, understand, and comply with this Code of Ethics. Violations of this policy may result in disciplinary action, up to and including termination of employment or contract, and legal consequences where applicable.

Reporting and Questions

Ethical concerns or suspected violations can be reported confidentially via:

• [Ethics Hotline Number]
• [Confidential Email Address]
• [Internal Whistleblower Portal]

Questions about the interpretation of this policy should be directed to the Human Resources or Compliance Department.

But the question really is how to write a code of ethics in a way that it's a useful tool and not something you create just to say you did. Incorporate these top ten tips to write an amazing code of ethics.

10 Practical Tips for Writing a Code of Ethics

1. Know What a Code of Ethics Is

You may already have a code of conduct and think that’s enough. However, Dr. Christopher Bauer, psychologist and ethics expert, argues that a code of ethics is needed to work alongside your company’s code of conduct.

Learn more about the differences between a Code of Ethics and Code of Conduct.

2. Get Inspired: Review Code of Ethics Examples from Top Companies

Corporations such as Apple and Google are under a lot of pressure to act ethically, so they dedicate substantial resources to policy development. Borrow some of their ideas.

Take a look at 18 of the Best Code of Conduct Examples to see what it really takes to develop a great policy for employees.

Your Code of Ethics doesn’t need to be all brand-new material. In fact, most companies share certain standards of ethical behavior and cherish similar values. Let their words inspire you, but tailor them to your own needs.

3. Use a Value-Based Approach to Guide Ethical Behavior

The traditional compliance-based focus to ethics relies on simply obeying laws. It’s essentially the “thou shall not” list for workplace behavior.

These days, a values-based approach is growing in popularity. This method focuses on teaching staff to internalize ethical behavior by understanding values and taking pride in their integrity.

A values-based approach uses a passionate tone that is affirmative and inspirational.

4. Involve Employees in Shaping the Code of Ethics

Send out a message asking for staff help with developing a code of ethics. Employees have an innate understanding of ethical behavior in the workplace. With or without a formal code policy, it’s often common knowledge what a company values and expects from its employees.

Enlisting help from employees will bring new perspectives to the table. After all, they too will be following this code. Employees may also be aware of staff-level behavior that managers or supervisors aren’t familiar with.

5. Identify and Address Key Areas of Ethical Risk

Areas of risk have the potential to destroy a business, and codes of conduct and ethics both need to identify and place significant importance on them.

Think about specific risks related to the business and industry. Sexual harassment, conflicts of interest, workplace safety and environmental standards are all risks that affect industries differently.

6. Include a Clear Ethical Decision-Making Framework

Part of a values-based approach is providing employees with the tools to internalize ethical behavior. This tool varies based on industry, but most ethical decision-making frameworks have similar steps:

7. Have a Professional (Like an Ethicist) Review Your Code

Hiring on professional help is a luxury for some companies without the financial wiggle room, but it’s a good layer of protection.

Instead of hiring on a lawyer, who may only contribute a blanketed legal perspective, an ethicist or human resources professional can look at the culture of the company and advise you better on what you need.

8. Make Sure It Aligns with Existing Company Policies

The last thing you need is to spend all this time writing a code of ethics only to have it contradict other policies and confuse employees.

A code’s content will always relate to topics used in the company’s other policies. Coordinate with other key documents to give employees consistent direction.

9. Use Clear, Conversational Language to Improve Readability

Do not get caught up in the appeal of big words and long sentences.

Employees will read one paragraph of the document and toss it in their drawer next to the gifted pins from last year’s staff appreciation party.

Write like you’re having a conversation with a friend - light, easy and straight-forward. Get from point A to point B without touching on everything else in between.

10. Provide Resources and Ongoing Ethics Training

Let employees know that they’re not without help. Ethical behavior can be tricky, and guidance is available. Assemble some members of HR or ethics enthusiasts who can be a point of contact for employees with questions.

Why Writing a Code of Ethics Matters

Organizations that invest time and effort into crafting a thoughtful code of conduct and ethics stand to gain in more ways than one. Here’s why it matters:

1. Builds Trust and Accountability

A well-communicated code of ethics fosters a culture of integrity. Employees, clients, and partners feel more confident working with an organization that clearly states its ethical standards and follows through on them.

2. Supports Compliance and Risk Mitigation

Ethical lapses often lead to legal and reputational risks. A clearly defined code can prevent violations by educating employees on compliance requirements and ethical red flags before they escalate into larger issues.

3. Aligns Teams with Core Values

When everyone operates from a shared set of values, collaboration becomes smoother and more mission-driven. A code of ethics acts as a moral compass, especially in gray areas where the “right” decision isn't always obvious.

In today’s environment—where stakeholders demand transparency and AI technologies are reshaping decision-making—an up-to-date, relevant code of ethics isn’t just a formality; it’s a strategic necessity.

Common Mistakes to Avoid When Writing a Code of Ethics

Even with the best intentions, organizations can make missteps when developing their code of ethics. Avoid these common pitfalls to ensure your code is clear, actionable, and effective:

• Using overly legal or technical language that employees don’t understand
• Being too vague or generic about values, leaving room for misinterpretation
• Failing to address enforcement, including consequences for violations
• Treating it as a one-time document instead of revisiting and updating it regularly
• Ignoring stakeholder input, which can lead to lack of buy-in
• Omitting real-world examples or case scenarios to guide behavior
• Not integrating the code into training, onboarding, or performance reviews

A strong code of ethics reflects both your organization’s aspirations and its practical realities. Getting it right means combining clarity, consistency, and credibility.

Frequently Asked Questions

1. What is a code of ethics in the workplace?

A code of ethics is a formal document that defines an organization’s core principles, values, and standards of behavior. It guides employees in making ethical decisions, handling dilemmas, and aligning with company culture. It serves as both a moral compass and a compliance framework to ensure consistent, responsible behavior across all levels of the business.

2. How do you write a code of ethics for a company?

To write a code of ethics, start by identifying your company’s core values and mission. Involve stakeholders in the drafting process for buy-in. Keep the language clear and relatable, and structure the document around real-life scenarios, ethical decision-making tools, and policy alignment. Make it accessible, visually organized, and part of regular training.

3. What should be included in a code of ethics?

A well-structured code of ethics should include your company’s values, a statement of purpose, behavioral expectations, guidance for resolving ethical dilemmas, and reporting mechanisms. It should also show alignment with existing policies and compliance regulations. Additional resources, case studies, and frameworks for ethical decision-making can make it more actionable and engaging.

4. What are the 5 code of ethics?

While every organization tailors its code of ethics to its unique values, five commonly recognized principles form the foundation of most codes:

• Integrity – Be honest, fair, and trustworthy in all actions.
• Accountability – Take responsibility for decisions and outcomes.
• Respect – Treat others with dignity and professionalism.
• Confidentiality – Protect sensitive information and privacy.
• Fairness – Ensure impartiality, equal opportunity, and just treatment.

These principles help guide ethical behavior, support decision-making, and establish a consistent culture across an organization.

5. What is the difference between a code of ethics and a code of conduct?

A code of ethics is a broad document outlining an organization’s values and guiding principles, focused on what’s right and why. A code of conduct, on the other hand, provides specific rules and behaviors expected of employees. While both are important, the code of ethics is value-based, and the code of conduct is rule-based.

6. Why is a code of ethics important in business?

A code of ethics builds organizational integrity by clearly communicating expectations for ethical behavior. It reduces the risk of misconduct, supports legal compliance, and strengthens trust among employees, stakeholders, and customers. When implemented properly, it becomes part of the corporate culture and improves decision-making, accountability, and overall reputation.

7. Can you provide an example of a code of ethics?

Yes. A typical code of ethics may include values like integrity, fairness, transparency, and respect. For example, it might state that employees must avoid conflicts of interest, report unethical behavior, maintain confidentiality, and treat colleagues respectfully. These values are often supported with scenarios or guidelines to help employees apply them in real situations.

8. Does your business need a code of ethics and a code of conduct?

Yes, having both is essential. A code of ethics outlines your company’s values and ethical principles, guiding long-term culture and behavior. A code of conduct provides specific rules and expectations for day-to-day actions. Together, they create a strong ethical foundation, reduce legal risks, and help employees navigate complex situations with confidence.

9. How to write a code of ethics example?

Start with a clear mission statement and list your company’s core values—such as integrity, accountability, and respect. Then outline expectations for employee behavior, ethical decision-making, and reporting concerns. For example: “Employees should avoid conflicts of interest and report unethical behavior confidentially.” Keep it concise, easy to understand, and aligned with your company policies.