The world is complex and this complexity makes it imperative for all organisations to have guidelines for behavior.
It is important for all your clients or customers, your staff and other stakeholders - to understand exactly what your organisation stands for and how they can expect you to conduct business.
A Code of Conduct is basically a set of standards describing the behaviour you expect of your own people. Relevant laws, regulations and internal policies do not govern all behaviour. A Code of Conduct should be an integral part of the way you work every day. The Code doesn't change the basic nature of the business you undertake, but instead it should articulate the way you strive to conduct business.
Whilst no Code of Conduct or ethics management activity can guarantee the prevention of wrongdoing, a Code of Conduct, coupled with appropriate supporting activities, is considered a "best practice" that can help to sustain a culture in which integrity is valued and promoted through everyday business practice.
ASX Corporate Governance Council’s principle three relates to promoting ethical and responsible decision-making. It states in the section ‘Application of a code of conduct’:
“Companies should formulate policies on appropriate behaviour of directors, senior executives and employees. Companies should encourage the integration of these policies into company-wide management practices. A code of conduct supported by appropriate training and monitoring ...