What does a Code of Ethics represent for an organization?

A Code of Ethics represents a set of principles that outlines the core values and ethical obligations of an organization. It serves as a framework for decision-making and behavior within the company, guiding employees on how to act in various situations that require ethical considerations. By establishing these standards, a Code of Ethics fosters a culture of integrity and accountability, ensuring that all members of the organization understand what is expected of them in terms of ethical conduct.

While legal requirements are important for compliance, a Code of Ethics goes beyond mere legality by encompassing the organization's values and ethical expectations, helping to shape its character and reputation. Additionally, while the document might assist with internal guidelines or compliance with legal norms, its primary function is to create a moral compass for employees rather than serve as an internal management guideline or a tool for financial reporting.