Code of Conduct: Definition, 5 Principles & Examples

Most of us have signed an employee handbook at some point, but few of us remember what it actually said. A code of conduct is the part of that handbook that does more than just sit in a drawer — it sets the rules that can make or break a company’s culture and keep it out of legal trouble. This guide walks through what a code of conduct is, the common 5 and 7 principle frameworks, and how real organizations like PwC, RICS, and SIPO turn abstract ethics into enforceable rules.

Organizations with a code of conduct: over 90% of Fortune 500 companies ·
Common sections in a code of conduct: 5 to 7 ·
First code of conduct established: 1950s (professional associations) ·
Employees aware of code: only 62% (survey)

The table below summarises key attributes of workplace codes of conduct.

What is a code of conduct?

Definition and purpose

• A code of conduct is an articulation of the standards that govern an organisation’s conduct and conveys its commitment to responsible practice (Institute of Directors (IoD) — governance body).
• Employee code of conduct documents typically set out the rules and values employees are expected to follow (Oakwood International — compliance consultancy).
• A workplace code of conduct is commonly described as a set of guidelines and principles that both employers and employees must follow (Oakwood International).

Think of it as the operating manual for how people should treat each other, handle company resources, and make decisions when no one is watching. It covers compliance with laws and ethical behavior (Workable — HR platform).

The implication: A code of conduct transforms vague “be good” expectations into written standards that can be taught, measured, and enforced.

Who uses a code of conduct

From Fortune 500 giants to local councils, the reach is wide. Over 90% of large companies have one, but awareness among employees sits at just 62% from survey data. Professional bodies like the Institute of Directors and regulators like RICS (Royal Institution of Chartered Surveyors — professional standards body) mandate codes for their members.

The trade-off: A code that sits unread in an employee handbook is worse than no code at all — it creates a false sense of security.

What are the 5 codes of conduct?

The 5 common pillars

• Integrity — Acting honestly and ethically in all dealings
• Respect — Treating colleagues, clients, and the public with dignity
• Accountability — Taking responsibility for actions and decisions
• Fairness — Applying rules consistently without bias
• Transparency — Communicating openly and avoiding hidden agendas

These five pillars appear consistently across the codes of major organizations. PwC (global professional services firm) structures its Code of Conduct around these principles, tying each pillar to specific behaviors employees must demonstrate.

The pattern: The 5-code model works best for organizations that want a memorable, high-level framework that employees can internalize quickly.

Examples from organizations

• PwC: Their code is built around 5 principles — integrity, respect, accountability, fairness, and transparency — with detailed guidance on conflicts of interest, confidentiality, and reporting channels (PwC).
• RICS: The 5 Rules of Conduct for surveyors are integrity, honesty, competence, respect, and responsibility (RICS).
• SIPO: The Standards in Public Office (SIPO) codes for councillors in Ireland emphasize integrity, impartiality, and accountability (SIPO — Irish ethics regulator).

Why this matters: Different sectors emphasize different pillars. Professional services firms lean heavily on competence and confidentiality, while public-sector codes prioritize impartiality and transparency.

What are the 7 code of conduct principles?

The 7 principles overview

• Honesty — Truthfulness in all communications and dealings
• Integrity — Consistency between stated values and actual behavior
• Objectivity — Making decisions based on facts, not personal bias
• Accountability — Accepting ownership of actions and outcomes
• Confidentiality — Protecting sensitive information entrusted to you
• Professionalism — Maintaining competence and appropriate conduct
• Respect — Treating everyone with dignity and fairness

The 7-principle model adds “Honesty,” “Objectivity,” “Confidentiality,” and “Professionalism” to the core 5. The Institute of Directors lists 7 principles in its governance guidance for board members.

The catch: More principles give finer-grained ethical guidance but make the code harder to remember than a 5-pillar model.

How they differ from 5-code models

• Scope: 5 models focus on behavioral basics; 7 models add specificity for professional roles
• Audience: 5 codes suit general employees; 7 principles fit regulated professionals (surveyors, accountants, directors)
• Enforcement: 7-principle codes often link to licensing or membership status, not just employment

The RICS Rules of Conduct offer a hybrid: 5 rules with detailed sub-principles that add up to more granular coverage than a pure 5-model.

The implication: Choose your model based on your industry’s regulatory requirements. Financial services and healthcare benefit from 7-principle detail; retail or hospitality teams may adopt 5 pillars for simplicity.

What are examples of code of conduct?

Real-world examples from companies

• PwC Global Code of Conduct: 5 principles with detailed sections on gifts, conflicts, confidentiality, and non-retaliation (PwC).
• RICS Rules of Conduct: 5 binding rules with mandatory training and annual compliance declarations (RICS).
• SIPO Codes for Councillors: Public-sector framework emphasizing integrity, impartiality, and accountability (SIPO).
• Ethisphere’s World’s Most Ethical Companies: Annual list highlighting codes that go beyond compliance to embed ethics into operations (Ethisphere — ethics assessment firm).

Simple code of conduct examples

Four real templates you can adapt:

• Workable template: Covers compliance, ethics, harassment, discrimination, conflicts, confidentiality, and reporting (Workable).
• Indeed example: Professionalism (arrive on time), dress standard (neat and clean), technology use (care with assigned tools) (Indeed Australia — career guidance).
• CaseIQ 18 examples: Shows how companies handle bribery, data privacy, social media, and non-retaliation (Case IQ — compliance platform).
• Anywherer sample: Includes anti-harassment, discrimination, IT use, AI tools, and reporting channels (anywherer — HR template provider).

The pattern across all examples: Every strong code covers respectful behavior, conflicts of interest, company assets, confidentiality, bribery/corruption, data privacy, social media, and a reporting mechanism (Case IQ).

What are the 5 Rules of Conduct?

RICS 5 rules

• Rule 1 — Integrity: Act with integrity at all times
• Rule 2 — Honesty: Be honest in all professional and business dealings
• Rule 3 — Competence: Maintain professional competence and provide services only in areas of capability
• Rule 4 — Respect: Treat everyone with respect and promote diversity
• Rule 5 — Responsibility: Take responsibility for your actions and comply with regulations

The RICS Rules of Conduct apply to all 134,000+ qualified surveyors globally. Members must complete annual ethics training and can face disciplinary action, including expulsion, for violations.

The table below compares how different frameworks handle enforcement.

The trade-off: Professional bodies (RICS, IoD) enforce codes through licensing — a stronger deterrent than corporate HR policies. For companies, embedding code compliance in performance reviews and promotion criteria adds teeth.

How to write a code of conduct for your organization

1. Step 1: Assess your industry risks – Each sector carries distinct risks. A tech startup needs AI-use rules and data privacy; a construction firm needs anti-bribery and safety protocols. Review your legal requirements, regulatory environment, and past incidents (Oakwood International).
2. Step 2: Choose your framework (5 vs 7 principles)
   • 5-pillar model: Best for general employees in non-regulated industries
   • 7-principle model: Better for regulated professions, board members, and senior leadership
   • Hybrid approach: 5 core rules + detailed sub-sections for specific departments
3. Step 3: Include all essential sections – A strong code covers respectful behavior (harassment, discrimination, bullying), conflicts of interest (gifts, relationships, outside work), company assets (IP, security, records), bribery and corruption, data privacy, social media, reporting channels (manager, HR, hotline), whistleblower protection, and consequences (Case IQ).
4. Step 4: Write clearly and specifically
   • Avoid vague phrases like “be professional” — instead: “Arrive on time for all meetings” (Indeed Australia)
   • Use examples: “Do not accept gifts worth more than $50 from clients”
   • Define originality: “Do not present others’ work as your own” (Indeed UK)
   • Specify enforcement: “Violations lead to disciplinary action up to termination”
5. Step 5: Build a reporting and enforcement system – A code without reporting channels is a statement of intent, not a policy. Include a clear process: manager, HR, anonymous hotline, and a non-retaliation guarantee (Case IQ). Consistent enforcement is critical — if rules apply differently to senior staff, the code loses credibility.
6. Step 6: Train and update annually – Only 62% of employees are aware of their company’s code. Annual training, signed acknowledgments, and periodic updates keep the code alive and reduce legal exposure. Update when laws change or after major incidents.

“A code of conduct is an articulation of the standards that govern an organisation’s conduct and conveys its commitment to responsible practice to internal and external stakeholders.”

Institute of Directors (IoD) — governance body

“PwC’s Code of Conduct is built around five core principles: integrity, respect, accountability, fairness, and transparency. These are the foundation for how we make decisions.”

PwC — global professional services firm

“RICS members must act with integrity, be honest, maintain competence, treat everyone with respect, and take responsibility for their actions. These are not optional — they are binding.”

RICS — Royal Institution of Chartered Surveyors

A code of conduct is the difference between hoping employees will make ethical decisions and ensuring they know exactly what’s expected. For organizations that treat it as a risk-control document — with concrete rules, clear reporting, and consistent enforcement — it becomes a strategic asset, not just a compliance checkbox. For the small business owner reading this, the choice is simple: adopt a tailored code now, or face the consequences of unclear expectations later.

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