What Is a Business Code of Ethics?

A business code of ethics is a written declaration an organization uses to define primary values and ethical standards.

Businesses issuing these written statements generally expect workers and management to function within the published set of guidelines.

This tells both outside stakeholders and internal stakeholders what to expect.

• Internal stakeholders (the employees and management team) know what is expected of them.
• External stakeholders know what to expect from the company and its representatives.

For an example of a published code of ethics, you can take a look at Nike's "Inside the Lines" which is the company's officially promulgated and somewhat extensive code of ethics for its employees to follow.