Why is a Code of Ethics an important part of every business from an employer standpoint?

One of the main reasons for a code of ethics/conduct is that the rules are clearly laid out for employees and there is not doubt about what they should do if they follow the code. If employees do not follow the code, they can be warned or terminated. Hayes (2019) of Investopedia says, “A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values, and the standards to which the professional is held” (Hayes, 2019).

Why is a Code of Ethics an important part of every business from an employee standpoint?

The Code of Ethics is important for employees because it is the standard to follow. If they have a question about a particular issue, the Code of Ethics should answer it. Leonard (2019) of Small Business Chron says, “[A Code of Ethics] provides employees with a framework of which rules exist, from a regulatory and law-enforcement standpoint and how to act in the gray areas of value-based ethics that aren't always clear” (Leonard, 2019).