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What is a Code of Conduct? Meaning and Example

A code of conduct is a written set of rules and principles describing how employees must behave at work and when representing the company: honesty, respect for colleagues, conflicts of interest, gifts, confidentiality, use of company assets, social media and compliance with law. Breaches are handled under the disciplinary process.

What a code of conduct usually covers

Write it in plain language with examples from your own work. 'Do not accept gifts above ₹1,000 from vendors; declare any gift to your manager' is clearer than vague phrases like 'avoid situations that may compromise objectivity'.

Code of conduct vs handbook vs standing orders

The code of conduct covers behaviour and ethics. The employee handbook is broader: it explains policies on leave, attendance, benefits, travel and more, and usually includes or links to the code. Standing orders, where they apply, are the formal service conditions for factory and other industrial workers, including what counts as misconduct and how discipline is handled; the legal detail is on the standing orders applicability page. In a factory, the code of conduct should be consistent with the standing orders, never in conflict with them.

Rolling it out and keeping it alive

Share the code at induction and take a written or digital acknowledgement from every employee, then repeat it each year or whenever the code changes. Train managers on grey areas, such as a vendor's Diwali gift or a relative applying for a job. ZeniaHR's Company Wall supports announcements that require acknowledgement, with a report of who has acknowledged, which gives HR a record without chasing paper forms.

Example: In March 2026, a Delhi pharmaceutical distributor revised its code of conduct after a sales executive accepted an expensive phone from a chemist chain. The new code capped gifts at ₹1,000, required every gift to be declared in a register, and gave examples for Diwali and wedding gifts. HR manager Ayesha Khan published it as an announcement requiring acknowledgement, and by 15 April 2026 all 340 employees had acknowledged it.

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Frequently asked questions

What should be included in a code of conduct?

A code of conduct should cover integrity and anti-bribery, respect and anti-harassment, conflicts of interest, gifts and hospitality, confidentiality and data protection, use of company assets and social media, compliance with law, and how to raise concerns without retaliation. It should also state that breaches will be handled under the company's disciplinary process.

Why do companies ask employees to sign the code of conduct?

A signed or digital acknowledgement shows that the employee received and read the code, which matters if a breach later leads to disciplinary action. It also prompts people to actually read it. Companies usually take the acknowledgement at joining and again each year, or whenever the code is revised.