What is the Difference Between Code of Ethics and Code of Conduct?

The difference between a Code of Ethics and a Code of Conduct lies in their focus and application. Here are the key distinctions between the two:

• Code of Ethics: This is a set of guiding principles that businesses use to define their moral character, make important business decisions, and establish their overall values. It focuses on values or principles and is aspirational in nature, containing core ethical values, principles, and ideals of the organization.
• Code of Conduct: This is a set of values, rules, standards, and principles outlining what employers expect from staff within an organization. It is more focused on compliance and rules, containing specific practices and behavior expected from employees. A code of conduct can range from big-picture ideals to specific rules, such as dress codes or break schedules.

While both codes share some similarities and are often combined into a single document, there is a slight nuance between the two. They both represent two common ways that companies self-regulate, providing direction to employees and establishing a public image of good behavior. However, the Code of Ethics governs decision-making, while the Code of Conduct governs actions.

Comparative Table: Code of Ethics vs Code of Conduct

Here is a table summarizing the differences between a Code of Ethics and a Code of Conduct:

In summary, a Code of Ethics focuses on guiding principles and values, while a Code of Conduct is focused on compliance and rules. A Code of Ethics is applicable to all members of an organization, whereas a Code of Conduct is addressed to employees only. Violations of the Code of Ethics may result in sanctions, including termination or dismissal, while violations of the Code of Conduct may result in disciplinary actions.