Code of Ethics: Definition, What's Included
Jump to Section
Quick Facts — Code of Ethics Lawyers
- Lawyers available: 26 employment lawyers
- Clients helped: 21 recent code of ethics projects
What Is a Code of Ethics?
A code of ethics, also referred to as an ethical code or statement of ethical principles, is a document that sets forth the expectations, standards of practice, and principles of conduct for a business or organization. This type of policy statement details clear penalties for employees or members who violate the code. Absent these sanctions, the code of ethics serves more like a list of expected duties.
A code of ethics sets higher standards of behavior than what is required by law. Ethical behavior is more complex than legal behavior. For example, it is unethical to be dishonest, but it is not illegal to lie except under certain circumstances. Business ethics demand a higher standard of behavior.
The History of the Code of Ethics
The social responsibility movement in the 1960s contributed to the development of business ethics. While the origin of business ethics goes back much further, it was in the 1960s when companies started to embrace social responsibility. The social responsibility movement states that individuals should act in a way that benefits society as a whole rather than simply protecting one's own personal interests. In the 1980s, many governments and corporations began to set forth formalized codes of behavior.
Here is an analysis of 150 of these corporate codes of ethics completed in 1989. This found five key elements that were similar among many of them. These codes of ethics addressed:
- The proper treatment of employees
- How to handle whistleblowers
- Guidelines for inter-employee relationships
- Regulations regarding employees' political contributions and actions
- Instructions for preventing bribery and handling conflicts of interest
How a Code of Ethics is Published
A code of ethics must be a published document, but it can take many forms. The code of ethics might exist in several forms within a single organization with each document tailored to a specific department, such as finance or sales. In some companies, employees are required to sign a document verifying that they have read the code of ethics. This requirement may apply to all employees or only to corporate officers.
The code of ethics may stand alone, or you might find it accompanied by the organization's mission statement, corporate values, and other policies. If you are an investment advisor, the code of ethics must be available if the corporation trades its stock publicly and is regulated by the Securities and Exchange Commission (SEC).
In addition to the code of ethics produced by an individual organization, you will also find codes of ethics which apply to entire industries, such as:
- The National Society of Professional Engineers (NSPE) Code of Ethics for Engineers
- The Institute of Internal Auditors (IIA) Code of Ethics
- The Code of Ethics for the Nutrition and Dietetic Registration Board
- Association for Institutional Research (AIR) Statement of Ethical Principles
- The Code of Ethics and Standards of Practice of the National Association of REALTORS
What's Included in a Code of Ethics?
A code of ethics includes both internal guidelines for ethical behavior and an outward statement of commitments and values as well as guidelines that an individual's behavior can be measured against. The code of ethics should include:
- Introduction: This preamble makes a clear statement about the company's values and commitment to supplying and enforcing an ethical code for conduct. This may appear as a message from the CEO.
- Statement of Company Values: This details the company's mission statement, financial objectives, social aspirations, and professional goals. Here, the organization may refer to other professional standards or standard-setting bodies that it follows, such as the American Medical Association (AMA)'s Code of Medical Ethics, which applies to physicians and dental practitioners.
-
Rules of Conduct:
This is the bulk of your code of ethics, outlining all of the rules that employees are expected to follow. It may discuss topics such as:
- Compliance with industry regulations
- Regulations for disclosure and privacy
- Truth in advertising
- Moral values, such as respect, responsibility, fairness, kindness, and trustworthiness
- Involvement and interactions with the community
- Discrimination policies
- Handling of interpersonal relations
- Rules regarding conflicts of interest
-
Implementation and Sanctions:
This section details how the code of ethics is enforced and what consequences will occur if the code is violated. This will specify:
- Guidelines for reporting a violation of the code of ethics
- Consequences for code violations
- Handling of employee termination or litigation
- Additional Resources: The code of ethics should conclude with compliance resources that refer to laws, policies, and procedures relevant to this code. You should also provide contact information for your department of ethics or human resource department. These resources will make it easier for employees to understand the code in depth.
How to Implement a Code of Ethics
Image via Unsplash by sctgrhm
A code of ethics is a beneficial document for nearly any type of business that will serve the company well alongside other essential contracts. When drafting a code of ethics, it's important to carefully consider the company's values, goals, and potential challenges. The code of ethics can mitigate many problems by setting forth clear rules and guidelines that employees review upon hiring.
To develop a code of ethics, you should:
- Collaborate with leaders throughout the organization. Set forth clear objectives, values, and regulations that are easily agreed upon.
- Review laws and regulations in your industry. Ensure that your code of ethics adheres to all the latest regulatory developments in your area of business.
- Simplify the language. Avoid legal jargon, so the code of ethics is easily understandable for employees, investors, clients, partners, and anyone else interested in your company.
Here is an article with some common provisions to consider for your code. Once a code of ethics has been reviewed, edited, and approved, it's ready for implementation. This code is only effective when it's disseminated properly throughout the organization. To do this, you must:
- Have the code of ethics endorsed by the Chairman and CEO.
- Circulate the code throughout the company and have employees review and sign as needed.
- Integrate the code into daily business operations.
- Implement procedures for managers and other leaders to review the code with employees regularly.
- Set forth a schedule for corporate management to review and update the code routinely.
- Detail the process of enforcing the code.
- Train all leaders involved in enforcement in the proper way to uphold the code and implement consequences.
The Value of a Code of Ethics
A well-written code of ethics will:
- Provide guidance for the actions of individuals within the organization
- Provide a public statement of values which serves as a form of marketing
- Mitigate risk by outlining the consequences of ethical misconduct
- Establish benchmarks for personal and professional evaluation
- Promote quality standards of practice
A code of ethics is an important document for any well-established business. Drafting and implementing this code early on will help solidify the company's values and morals. Consider having a contract lawyer review your code of ethics prior to publication to ensure that it is clear and easily enforceable.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Need help with a Code of Ethics?
Meet some of our Code of Ethics Lawyers
Ted A.
Equity Investments, Agreements & Transactions | Securities & Lending | Corporate Governance | Complex Commercial Contracts | Outside General Counsel & Compliance
"Ted was extremely responsive, knowledgeable, easy to work with and was able help me the same day. I would confidently recommend him in the future."
Jane C.
Skilled in the details of complex corporate transactions, I have 15 years experience working with entrepreneurs and businesses to plan and grow for the future. Clients trust me because of the practical guided advice I provide. No deal is too small or complex for me to handle.
"Jane was thorough and patient through a long list of contract revisions (NDAs, Advisor and Consulting Agreements) tailored to CT and DE. She answered detailed follow-up questions clearly and directly, including on enforceability and non-compete scope. Would recommend for startup post-incorporation and contract work."
Michael B.
Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.
"I'm a solo developer launching my first app and needed privacy, terms, and disclaimer documents done properly. Mike delivered all three and they were thorough — the disclaimer in particular covers the specific ways an alarm app can fail, which is exactly the risk I needed addressed. What stood out was the follow-through. When I found a typo in one of the paragraphs he'd written, he confirmed the correction the same day and made a point of saying I could reach out again in the future. He was responsive throughout and easy to work with, and he clearly understood what a small software business actually needs rather than handing over boilerplate. If you're a small developer or single-member LLC trying to get your legal documents right before launch, I'd recommend him."
Daehoon P.
Daehoon P.
Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services
"Daehoon drafted a co-op sublease for my New York apartment. He was thorough, responsive through several rounds of revisions, and gave me a clear checklist of everything the package needed. Would definitely recommend."
Ryenne S.
My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
"Ryenne took her time to read through our lengthy purchase agreement with us and explained each section in detail. She also answered any questions I had along the way. Very satisfied with her knowledge and approach on our agreement."
J.R. S.
Experienced Attorney with an MBA in Finance who provides a business-oriented mindset and thrives in a collaborative environment with a-typical challenges. Possesses exceptional skills in legal research, drafting and enforcing contracts, skillful in negotiations and mediations, drafts extremely persuasive pleadings, attacks depositions with zeal for my clients. Experience includes Business Management and IT Consulting with a successful track record managing outside relationships, associated costs, and optimizing outcomes for client(s). Effectively restructures antiquated business processes and incorporates technology and best practices to effectuate progressive outcomes for business clients. Partners collaboratively with business leaders to advance company objectives while minimizing risk to ensure internal and external compliance, increased profitability, and diverse practices. Dynamic communicator with the interpersonal skills to build trusting relationships with executives, management, and employees of various backgrounds, expertise, and styles.
"JR was fantastic. Quick to digest a complex, nuanced situation and generated an effective document as agreed-upon. Highly recommend!"
January 2, 2024
Elaine T.
Trusted Intellectual Property Attorney, Advisor and Strategic Partner
Find the best lawyer for your project
Browse Lawyers Now
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with a Code of Ethics?
Employment lawyers by top cities
- Austin Employment Lawyers
- Boston Employment Lawyers
- Chicago Employment Lawyers
- Dallas Employment Lawyers
- Denver Employment Lawyers
- Houston Employment Lawyers
- Los Angeles Employment Lawyers
- New York Employment Lawyers
- Phoenix Employment Lawyers
- San Diego Employment Lawyers
- Tampa Employment Lawyers
Code of Ethics lawyers by city
- Austin Code of Ethics Lawyers
- Boston Code of Ethics Lawyers
- Chicago Code of Ethics Lawyers
- Dallas Code of Ethics Lawyers
- Denver Code of Ethics Lawyers
- Houston Code of Ethics Lawyers
- Los Angeles Code of Ethics Lawyers
- New York Code of Ethics Lawyers
- Phoenix Code of Ethics Lawyers
- San Diego Code of Ethics Lawyers
- Tampa Code of Ethics Lawyers
Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.
View Trustpilot Review
I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.
View Trustpilot Review
I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.
View Trustpilot Review