Effects of Code of Conduct on Productivity


A code of conduct provides the necessary rules, practices and outlines the responsibilities for an individual or an organization. A code of conduct is said to be a set of organizational rules or standards regarding organizational values, beliefs, missions and ethics. An employee contributes greatly to the overall success of any business or an organization by not only acknowledging these rules and practices, but applying them throughout day to day procedures. A code of conduct serves as a precedent to be honoured by staff members, as such, it is vital that an organization implements a code of conduct as it may benefit as a blueprint for maintaining a company’s standard and reputation not solely because a code of conduct influences employee culture but also because it affects; a) decision making, b) support organization core standards and c) the overall success of the organization.

1) A code of conduct is a central guide and reference for an employee to support day to day decision making.

This helps in the exchange of moral and consistence, enabling representatives to deal with moral situations they experience in ordinary work day

  • Having a required business set of accepted rules builds up a climate of responsibility inside an association related to setting out a solid social establishment for the business. Legally it is pivotal, as it helps to guide companies to enforce as well as implementing ethical policies and procedures for all kinds of decision making.
  • A code of conduct will establish and build trust between the organization and majority of its stakeholders.

    Been it be their employees, customers, suppliers and the public at large. A successful set of accepted rule builds up the estimates of the association that determines its activities and rules that underline decision making. (Mintz, 2011).

  • The sole purpose for most organizations is to make profits. Probable the ultimate strategy to achieve this is by having and adhering to a code of conduct. The nonattendance set of principles may have some transient advantages for an organization in the long haul and turn its focus from partners, social, environmental and financial performance. (Tapas, 2012).

2) A code of conduct is significant for organization core standards this gives workers a structure of guideline which includes the mission and core values of the organization from a managerial and law authorization viewpoint of acceptable behaviour.

  • A well-written code of conduct rules explains an association’s central goal, values a standard, interfacing them with standards of characteristics an organization wishes to empower in pioneers and workers. These standards can move towards getting to be benchmarked against with people and legitimate execution can be estimated.
  • Representatives of an organization should know concerning what is normal behaviour in the workplace, which cannot be the similar path of act at office as you carry out at home. (Juneja, 2015). Workers within an organization should understand the difference between an office and home this would allow minimal problem within an organization,
  • A code of conduct can help guide employees on the path to integrity, accountability and excellence. This will provide a compass and guideposts but much more is required to ensure that the path is clear and that everyone wants to stay on it.
  • Having a set of accepted rules is not sufficient in reality a significant number of the companies that top features for monstrous outrage had some sort of set of principles in the company. Force Automotive stated a breach of a code of conduct can influence staff culture by creating a space of uncertainty and chaos. (Sharma, 2014),

3) An association with a powerful set of principles offers numerous presentation benefits which can improve worker confidence and employment fulfilments help the organization’s enlisting endeavours, help strengthen relations with colleagues and grow an association achievement level.

  • An employee implicit rule guarantees career growth and furthermore benefits an association over the long run. Sharing of confidential information with competitors would be eliminated and all their energies would be utilized in productive activities which would benefits the organization success. (Juneja, 2015).
  • Regardless of whether there is no lawful prerequisite for an organization to draw up a set of principles, it merits doing as such on the grounds that it demonstrates to representatives and potential workers that an organization is dependable and moral organization. In doing so this will make an organization progressively appealing to work and do business.
  • Within any organization the pioneers are the movers and promoters of good ethical behaviour from individuals. Their remarks and actions must be reliable conduct inclined in order to influence and inspire their staff to similar attitudes and behaviour. (Fryer, 2011). Since in most organization leadership is top down this is reasonable to assume that they lead with this charge of an enhanced system of high values and promote organizational success.


All healthy relationships are built on trust, including the relationship companies have with their partners, clients, and employees. In the event that there is something all the ongoing prominent corporate outrages have indicated to us it is the means by which delicate trust truly is the way it is nonappearance can be adverse to the in the general formation of an organization esteem creation. A well-written code of conduct rules explains an organization’s goals, standards, principles and qualities. A code of conduct decision making balances the maximization of investor benefit with impacts of business exercises and outer partners, upgrades in representative working conditions the sounding internal and external bodies in the moral basic leadership.

Having implicit rules in a working environment furnishes staff with clear benchmarks and desires for how to carry out their responsibilities. It is significant for staff to comprehend and consent to the set of accepted rules, as their consistency with the code fabricates business notoriety. A relationship with a groundbreaking set of standards offers various introduction benefits which can improve specialist certainty and business fulfilments help an organization in staffing, help fortify relations with partners and grow an affiliation accomplishment level.


  1. Fryer, M. (2011). Ethics and Organizational Leadership: Developing a Normative Model. New York, NY: Oxford University Press.
  2. Juneja, P. (2015). Importance of Employee Code of Conduct. Retrieved from https://www.managementstudyguide.com/importance-of-employee-code-of-conduct.htm
  3. Mintz, S. (2011, October 14). Political Ethics | California | Steven Mintz Ethics. Retrieved from https://www.stevenmintzethics.com/
  4. Sharma, T. (2014). Force Automotive – breach of code of conduct. Emerald Emerging Markets Case Studies, 4(2), 1-12. doi:10.1108/eemcs-08-2013-0165
  5. Tapas, D. P. (2012). Business Ethics in decision making. Paripex – Indian Journal Of Research, 2(1), 115-116. doi:10.15373/22501991/jan2013/42
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