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These statements are formally addressed and need to be accepted by the members when they join the organisation for the first time. These help the business enterprise in regulating the business efficiently. While code of conduct is something that states organized values, code of ethics is used to observe ethical norms and gives a foundation to rules of conduct. Check out the article to know more on these two topics.
Comparison Chart
Definition of Code of EthicsCode of Ethics is a document issued by the top-level management, which consist of a set of principles, designed to guide the members of the organisation to carry out business honestly and with integrity. It describes the core values of the organisation that guides the decision-making. It provides ethical standards which are to be followed by the members. It sets out general guidelines to assist individuals to apply their judgment, concerning a suitable behaviour in a given situation. Code of ethics helps members in understanding what is right or wrong. The codes are disclosed publicly and hence addressed to the interested parties to know the way the company does business. Violation of the code of ethics by any member may result in termination or dismissal from the organisation. Definition of Code of ConductCode of Conduct is a document that expresses the practices and behaviour of a person, required or restricted as a condition for becoming a member of the organisation or profession. The code sets out the actual rules, so it lays down the do’s and doesn’t s of an employee. The members are responsible for its adherence and held accountable for its violation. Every organisation has its code of conduct issued by the Board of Directors (BOD) that determines the social norms, regulations and responsibilities. It is in the form of written statement; that contains rules for
behaviour, which are supposed to be followed by the employees of the company. The document directs and guides the employees in various matters. Key Differences Between Code of Ethics and Code of ConductThe major differences between code of ethics and code of conduct are described in the given below points:
ConclusionCode of Conduct is actually extracted from the Code of Ethics. Therefore, the latter concept is wider than the former. Moreover, these codes are beneficial for businesses of any size and nature as the codes lays down direction which is helpful for employees, to behave in a particular manner and also making a public image of ethical behaviour. Which of the following is a reason why the the compliance department conducts internal and external audits?Which of the following is a reason why the the Compliance Department conducts internal and external audits? To identify areas of risk and compliance with Federal and State regulatory guidelines.
Which of the following is true regarding appropriate responses to an offense detected by an organization's compliance program?Which of the following is true regarding appropriate responses to an offense detected by an organization's compliance program? Disciplinary action taken against those engaged in misconduct is an appropriate response.
Which of the following is an effective tool for uncovering unethical or illegal activity in an organization?Which of the following is an effective tool for uncovering unethical or illegal activity in an organization? The ethics questionnaire.
Which of the following statements about the chief audit executive's responsibilities for internal audit resources is most accurate?Which of the following statements about the chief audit executive's responsibilities for internal audit resources is most accurate? The CAE is responsible for the effective deployment of resources to achieve the approved audit plan.
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