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Why is it important to have a code of conduct?

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Quick Answer

According to the Free Management Library, a code of conduct is important because it promotes moral behavior, acts as a guideline for ethical decision making, enhances the reputation of an organization, prevents negative legal effects, encourages positive relationships, acts as a reference for solving ethical dilemmas and prevents discrimination or harassment. A code of ethics highlights the values which members of an organization or group must uphold.

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Full Answer

A code of ethics promotes a good social and professional culture by demonstrating how people are expected to act. The process of assessing the behavior of employees becomes more objective when a code of conduct is used as a reference point. An organization's code of conduct applies to both casual and permanent employees.

The Free Management Library notes that a code of conduct allows an organization to stand out in the market and become more competitive. Employees are expected to read and understand the provisions of their organization's code of conduct in order to ensure compliance. A company's managers should practice the values and guidelines within their code of ethics so that they can influence their subordinates to comply. Additionally, a code of ethics should be reviewed and updated regularly to ensure it complies with the legal framework of the state.

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