What is the purpose of a code of conduct?

Theresa and Mike understand that building the culture they envision requires effective communication, collaboration, and participative problem solving. They envision creating an organization such that Joe and other employees will know exactly what to do when faced with choices that involve ethics. As the first step in embedding clear ethical processes in the organization, they realize they need to devise a code of conduct. Both companies have operated with an unwritten code that was never formalized. The consultant is asked to help them understand the purpose and content of an excellent code of conduct and how they should go about developing it.

Answer the following questions:

• What is the purpose of a code of conduct?
• Why is it important for a company to have a written code of conduct?
• What issues should be considered to be included in a code of conduct, especially given the merger scenario?
• Evaluate the code of conduct for your current or past employer (if the information is not available, evaluate a code of conduct identified in an Internet search).