Small business management often requires organizations to create various policies for managing employees and other various business situations. Many business organizations develop a written manual or code of conduct to help enforce management policies. Small businesses may also use their business mission or vision statement for creating company conduct policies. Using the company’s mission or value statement helps business owners create management policies consistent with the company’s business purpose.
A code of conduct usually outlines the expected behaviors, the responsibilities for action expected by everyone working in the business organization. This conduct policy may include the business owner’s ethical beliefs or desired business values. Businesses can also use a code of conduct to outline basic employee policies such as a dress code, avoidance of illegal drugs, complying with government laws or regulations, and other expected behaviors.
Prohibit Inappropriate Behavior
Business organizations often implement a code of conduct to limit or prohibit inappropriate behavior by managers and employees. Inappropriate behavior may be anything that detracts from employees' ability to complete their daily work functions in a timely and efficient manner. Business codes of conduct normally prohibit sexual harassment or workplace discrimination. Failing to control inappropriate behavior may lead to serious legal liabilities or reviews from government agencies.
Improve Employee Performance
The code of conduct may operate in conjunction with the company’s employee performance management system. Employee performance management seeks to improve the effectiveness and efficiency with which individuals complete their jobs. While a code of conduct often limits certain behaviors in employees, it may also provide information regarding rewards for employees who perform to exceptional levels in the company. Rewards may include compensation increases, bonuses or additional vacation time.
A code of conduct allows companies to promote positive goodwill among current employees, potential employees and the general public. Companies that treat employees with respect and provide a favorable workplace can gain a reputation as an exceptional company in the business environment. Companies may then hire more highly skilled employees who want to work for the business organization because of the workplace benefits offered through a company’s code of conduct.
Implementing ethical values into a code of conduct helps employees to understand the code’s importance. Ethical values usually promote the common good among all employees or advance the values found in society or the business environment. Companies often implement their ethical values into their code of conduct, since ethics mean different things to different people. If companies outline particular ethical values, such as transparency, integrity and social responsibility, that can help employees understand the specific ethics or conduct principles that drive the organization.
- Hemera Technologies/AbleStock.com/Getty Images