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Definition

Code of conduct/Ethics

A code of conduct (or code of ethics) is a formal statement of an organization’s values on certain ethical and social issues. A code of conduct describes the general value system, moral principles, and specific ethical rules that govern a firm. The advantage of having a code of conduct is that it provides specific guidance to managers and employees regarding what is expected of them in terms of ethical behavior. Consider what Google has done in this area. The company’s informal corporate motto is “Don’t be evil,” but it also has a formal code of conduct, which explicitly states what is and isn’t permissible in the organization.

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