ERC Creating a Workable Company Code of Ethics
The ERC has revised and updated the publication "Creating a Workable Company Code of Conduct". First published in 1990, this tool was designed to help an organization develop and implement a code of ethical business conduct or revise existing standards and policies. The revised publication is now in production and will be shipped in mid-June, 2003.
The updated document provides answers to important questions such as:
- What is a code of ethics and what is its role?
- What preliminary decisions do you need to make?
- How are codes of ethics developed?
- What should be included in a code of ethics?
The publication also includes a variety of tools for code development, such as definitions, sample survey, interview and focus group questions, a template and worksheet for writing code provisions, and a code development process checklist. Additionally, the new edition incorporates timely information on the US Federal Sentencing Guidelines, In Re Caremark, The Sarbanes-Oxley Act of 2002 and the modified Securities and Exchange Commission guidelines.
Excerpts
From "How Are Codes Developed?"
If you want to tailor your document to your organization and are willing to invest time gathering baseline data (for future use in evaluating your code's effectiveness), the process of writing your code requires fifteen steps. There are other models possible, but the steps outlined here will guide you through a comprehensive effort with measurable outcomes.
These steps can be loosely divided into overarching phases:
- Planning the Work Effort (Steps 1-3)
- Collecting Data (Steps 4-6)
- Writing the Draft Code (Steps 7 –8)
- Specifying Reporting and Enforcement Mechanisms (Step 9)
- Having the Code Reviewed (Steps 10-12)
- Obtaining Board Approval (Step 13)
- Choosing Communication and Education Strategies (Step 14)
- Scheduling Code Updates and Revisions (Step 15)
(Each of these steps is explained in more detail in the book.)
From "What is in a Code of Ethics?"
We recommend that your code of ethics be a reasonable length, not so lengthy and legalistic that it won't get read. Your document should include the following elements:
- Memorable title
- Leadership letter
- Table of contents
- Introduction-prologue
- Credo
- Core values
- Code provisions-substantive matters
- Information and resources
Each of these elements is detailed in turn.
PLUS Sample Forms and Tools Including:
- Useful Information About Standards and Legislation
- Sample Data Collection Question Sets
- Definitions of Values
- Communicating Ethical Commitment: ERC's Model of Organizational Change
- Code of Ethics Development Process Checklist
- How to Write Code Provisions, Including a Sample and a Code Provision
- Worksheet
- Information Sources
- Glossary
"Creating a Workable Company Code" pulls together information publicly available and information not previously published and melds the pieces together to create a comprehensive guide that dispels the mysteries of code creation.
