What is the purpose of a code of conduct in compliance?

The purpose of a code of conduct in compliance is primarily to establish a clear set of expectations for ethical behavior and adherence to regulations. A well-crafted code of conduct serves as a framework for how employees should act in various situations, helping to promote a culture of integrity and respect within the organization. It guides employees on the principles of professional conduct that align with the company's values and compliance with relevant laws. This foundational aspect is critical, as it enables organizations to reinforce a commitment to ethical standards and compliance obligations, effectively minimizing the risk of misconduct or non-compliance.

While providing detailed procedures for compliance audits, offering training modules for employees, and documenting compliance technology are important aspects of a compliance program, they are not the primary function of a code of conduct. A code of conduct specifically focuses on setting ethical and behavioral standards rather than detailed procedures, training materials, or technology documentation. This makes it an essential element of an organization’s broader compliance strategy.