Code of Conduct for Organisations

By;
CA Kamal Garg
[B. Com (H), FCA, DISA (ICAI)]
cakamalgarg@gmail.com
 Introduction

• A code of conduct is a set of rules outlining:

1. the responsibilities of; or
2. the proper practices for
an individual, party or organization
 Introduction
• Responsibility refers to the managerial commitment or duty;
• Proper Practices refer to the modus operandi for executing
and fulfilling such managerial commitment or duty
• In its 2007 International Good Practice Guidance, "Defining
and Developing an Effective Code of Conduct for
Organizations", the International Federation of
Accountants (IFAC) provided the following working definition:
"Principles, values, standards, or rules of behavior that guide
the decisions, procedures and systems of an organization in
a way that:
(a) contributes to the welfare of its key stakeholders, and
(b) respects the rights of all constituents affected by its
operations."
 Significance of Code of Conduct
• Code of Conduct is the standard of expected ethical
behaviour for the company's management and employees. It
is about holding oneself to the highest standards of ethical
business behaviour;
• Typically Codes talk about expectations to:
1. obey the law,
2. conflicts of interest,
3. insider trading,
4. preserving confidential information,
5. bribery,
6. corporate opportunities,
7. competition and fair dealing among other things