An 'etiquette' for companies: The Code of Conduct

Essentially, a code of conduct formulates the 'rules of conduct' for companies and their employees. It is an internal guideline that can also have other names such as 'Corporate Behavior' (CB) or 'Guiding Principles'. It is the 'inner law' that everyone in the company has to follow. Violations of these rules can have consequences under employment law.

On the one hand, a code of conduct provides employees with security through a basic orientation for action; on the other hand, the uniformity that these rules enforce conveys a desired uniform corporate image to the outside world.

A code of conduct can be as short and succinct as the Ten Commandments, but it can also regulate every conceivable problem in detail, from dealing with gifts, working hours, data protection and customer relations to anti-corruption measures. The code of conduct is usually embedded in the larger framework of corporate social responsibility (CSR).