Importance of Employee Code of Conduct

31/07/2022 0 By indiafreenotes

Employee code of conduct guides individuals as to how they should behave at the workplace. Employees need to be aware as to what is expected out of them in the office. You just can’t behave the same way at office as you behave at home. Your Boss can be your best friend outside office but at work you have to respect him and also treat him like your superior. Employee ethics is essential for maintaining discipline at the workplace. Management needs to be liberal with the employees but there has to be some element of fear also in the minds of employees. If the superiors are too friendly with their subordinates, there are chances they might start taking undue advantage of the friendship. There has to be a balance always. Yes, organization’s policies ought to be employee friendly but that does not mean employees come to office at 11 AM just because they cannot get up early in the morning. There has to be a genuine reason for everything.

There has to be a proper dress code for employees. Individuals just can’t enter into the office wearing anything. Employee code of conduct decides what individuals ought to wear to office. Some organizations are very particular of what their employees wear to work. Let us go through an example:

Organization A did not instruct employees about their dress code. There was really no strictness as far as dress code was concerned. One fine day; Paul came to office wearing T shirt and Capri. The same day, one of Organization A’s esteemed clients came for site visit. Trust me, the moment the client met Paul, he was rather surprised. Understand, coming in jeans and T shirt to work does not stop us from working but it just reflects the non-serious and casual attitude of employees. It is always better if employees come to work in formals. Casual dressing is okay on Saturdays but that does not mean you can come to work wearing shorts. Dress sensibly even if it is a weekend and you have already gone in the holiday mood. Employee dress code also ensures uniformity among employees.

Employee code of conduct ensures career growth and also benefits the organization in the long run. If employees understand the difference between what to do and what not to do at the workplace, problems would never arise. We bunk offices because we do not realize that such a practice is wrong and unethical. Employee ethics ensures employees adhere to the rules and regulations and also work for the organization. Employee ethics motivates employees not to indulge in gossiping, nasty politics, criticizing fellow workers, bunking office and so on. They seldom think of sharing confidential information or data with competitors and all their energies are utilized in productive activities which would benefit the organization.

Employee ethics ensures employees attend office on time and genuinely respect their superiors. Most of the times it has been observed that employees have a hate relationship with their Bosses. Are bosses wrong always? Ask yourself. How would you feel if someone reporting to you is absconding from the office and you have a deadline to follow? Yes, sometimes it does become essential to show your powers and be a little authoritative. Understand that employee ethics is not meant to downgrade employees but make them aware of their duties and responsibilities in the organization.

Most essentially, employee ethics is important as it goes a long way in making the value system of employees strong. This way, employees on their own develop a feeling of attachment and loyalty towards the organization. Remember, employee ethics is not meant to bind you but make you an indispensable employee.


A quality code of conduct can foster employee retention and loyalty. When you feel engaged with the company’s culture and share the same values, you will feel committed. Also, the code serves as a framework for making ethical business decisions. It serves as a communication tool for employees, customers and stakeholders about what a company truly values. Furthermore, it informs a candidate seeking a job about how a particular company is likely to treat them upon joining.

Types of code of conduct

An employer may choose to include different types of codes of conduct in their employee handbook. Here are some important ones:

  • Company’s value
  • Conflict of interest
  • Financial integrity and responsibility
  • Confidential information
  • Harassment and discrimination
  • Dress code
  • Leave policy
  • Break-time policy
  • Social media policy
  • Reporting misconduct
  • Illegal activity
  • Internet usage policy
  • Use of technology
  • Absenteeism
  • Plagiarism
  • Environmental concerns


Provides guidelines of employee behaviour

Having a code of conduct gives you a structure to follow from the moment you join a new company. It reduces the instances of problems coming up because you will always follow the most appropriate behaviour. Also, a code clearly outlines the difference between appropriate and inappropriate behaviour, which helps in strengthening relationships with your colleagues.

Outlines a company’s principles and values

When a company displays their code of conduct on their website, it helps potential job candidates and clients learn more about its vision, principles and values. Based on this, an employee can decide whether they share the same values and fit into its culture.

Accelerates career growth

When you know what to do and what to avoid, problems and dilemmas rarely occur at work. You may not realise that asking other employees to punch for you or sharing business information with outsiders is an unfair practice. But with a code of conduct, you avoid such practices. This can help accelerate your career growth because you utilise your energy in productive activities.

Ensures compliance with the legal system

A code addresses issues like workplace discrimination and harassment. It ensures that you adhere to the company’s policies and ensure compliance with the central and state legal system. When you act within the law, it improves your company’s credibility and helps in building its brand.

Increases employee morale

When every employee respects each other, it builds long-lasting relationships and boosts the entire team’s morale. Employees prefer working in an organisation that boosts morale because they feel respected and valued. It also helps bring out your full potential and you work towards achieving a common business goal.

Produces a compliant culture

Candidates prefer to work in companies with a robust and in-depth code of conduct because it helps them understand the process for solving work-related problems. Also, these rules make it a lot easier to report a violation of your company’s policies. With a streamlined process in place, it becomes easier to ensure compliance.