Creating a Code of Conduct (UK)

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Creating a code of conduct is an important part of any business, helping to set expectations for behaviour, foster trust and respect, and protect against legal risk. A comprehensive code of conduct should be tailored to the specific needs of an organisation, updated regularly and reviewed by a qualified legal professional. Whilst this can seem like a daunting task, the Genie AI team have developed an open source legal template library to provide guidance on how to develop robust codes of conduct for any business.

The purpose of a code of conduct is twofold: firstly it outlines the values and principles that must be adhered to in order for the business to operate effectively; secondly it sets out what is expected from employees, contractors and other stakeholders in terms of both behaviour and responsibilities. The policy must be reviewed regularly as standards evolve over time alongside changes in the wider environment.

Without a well-defined code of conduct businesses are left exposed; not only do they face potential legal ramifications but also risk damage to their reputation. With such high stakes it’s essential that businesses create robust codes with appropriate consequences in place if these are breached - which can often require advice from experienced professionals - as well as making sure employees understand their implications clearly before signing off on them.

At Genie AI we are dedicated to providing our community with free resources which make complex processes easier. Our dataset teaches AI what a market-standard code of conduct looks like and our template library offers users access to documents which have already been drafted by industry experts so that all you need do is customise them according your own needs without having to engage expensive professional services*. In addition our team provides step-by-step guidance on how best to create codes that work for your business so you can ensure you’re protected from future litigation or reputational harm.

We believe everyone should have access high quality legal documents no matter their budget or experience level so why not check out our template library today? We promise you won’t regret it!

*Whilst using this guide does not require you having a Genie AI account , if you need more help or want us involved we’d love join forces with you! Read on below for more information about how we can help!

Definitions

Legal Compliance: Following the laws and regulations that apply to a particular situation.
Scope: The range of something, such as acceptable behavior in the workplace.
Sanctions: Punishments or restrictions put in place when a violation of the Code of Conduct occurs.
Mitigating Factors: Circumstances that can be taken into consideration when determining the severity of a violation.
Protocols: Sets of rules and procedures to be followed in a particular situation.
Distributing: Spreading information to people or places.

Contents

1. Understanding the Purpose of a Code of Conduct
2. Defining the scope of acceptable behavior
3. Understanding the importance of ethical and legal compliance
4. Identifying the Regulations and Laws that Apply
5. Researching applicable local, state, and federal laws
6. Consulting with legal counsel as needed
7. Establishing Expectations of Conduct
8. Creating an outline of expected behaviors
9. Defining any prohibited activities
10. Defining Consequences of Violations
11. Establishing a system of warnings and/or sanctions
12. Defining the process for determining the severity of the violation
13. Ensuring a Safe Work Environment
14. Creating a system to report and address safety concerns
15. Establishing procedures for reporting and resolving incidents
16. Establishing protocols for addressing safety issues
17. Establishing a Process for Reporting Violations
18. Establishing a confidential system for reporting violations
19. Establishing a process for investigating reports of violations
20. Establishing a Complaint Resolution System
21. Establishing a process for addressing complaints
22. Establishing a system for resolving conflicts
23. Training and Education for Employees
24. Developing a plan for educating employees about the Code of Conduct
25. Creating a system for monitoring employee compliance
26. Developing a Communications Plan
27. Establishing protocols for communicating the Code of Conduct
28. Creating systems for distributing information and updates
29. Reviewing and Revising the Code of Conduct Regularly
30. Establishing a timeline for review and revision
31. Evaluating effectiveness of the code and making necessary changes

Get started

Understanding the Purpose of a Code of Conduct

• Reflect on the purpose of a Code of Conduct – why it is important to have one in place and what it should achieve.
• Identify the values of your company and the standards of behavior you expect from employees.
• Research existing codes of conduct and ethical approaches in the UK to gain insight and inspiration.
• Draft a statement that clearly outlines the purpose and objectives of the Code of Conduct.
• Discuss the statement with key stakeholders in the company and make adjustments where necessary.

Once you have completed these steps, you will have a clear understanding of the purpose of a Code of Conduct and have drafted a statement outlining the purpose and objectives of your own Code of Conduct.

Defining the scope of acceptable behavior

• Identify key characteristics or traits that you want to see in all employees.
• Think about what kind of behaviour you want to encourage and discourage.
• Consider any particular challenges or ethical issues that might need to be addressed in the code.
• Create a list of examples of acceptable and unacceptable behaviours.
• Make sure the code is clear and easy to understand.

When you can check this off your list:

• You have identified key characteristics and traits for employees.
• You have created a list of examples of behaviours that are acceptable and unacceptable.
• The code is clear and easy to understand.

Understanding the importance of ethical and legal compliance

• Research relevant laws and regulations that may apply to your organization
• Gain an understanding of the ethical implications of not having a code of conduct
• Consider any legal or ethical responsibilities that may need to be addressed in the code of conduct
• Understand any relevant international or regional laws and regulations that may apply
• When you have a clear understanding of the legal and ethical implications of having a code of conduct, you can check this off your list and move on to the next step.

Identifying the Regulations and Laws that Apply

• Identify the applicable regulations and laws based on the location and industry of the organization, such as the Equality Act 2010 in the UK
• Review the requirements of each applicable law and regulation, and assess any potential impacts on the Code of Conduct
• Create a list of the applicable regulations and laws and their requirements
• Discuss any potential impacts on the Code of Conduct with the organization’s legal counsel
• When you have identified all the applicable regulations and laws and assessed their potential impacts on the Code of Conduct, you can move on to the next step.

Researching applicable local, state, and federal laws

• Research local, state, and federal laws applicable to the Code of Conduct and the organization’s activities
• Familiarize yourself with the laws, regulations, and guidelines that are relevant and must be complied with
• Take note of any specific language or requirements that need to be included in the Code of Conduct
• Create a list of all applicable laws, regulations, and guidelines that must be included in the Code of Conduct
• When you have identified all applicable laws, regulations, and guidelines, you can move on to consulting with legal counsel as needed.

Consulting with legal counsel as needed

• Contact a qualified legal counsel to help you craft a Code of Conduct that complies with all applicable local, state, and federal laws
• Ask legal counsel to review your current Code of Conduct or help you create one from scratch
• Make sure you discuss the importance of being respectful and professional in the workplace
• Review any relevant documents with legal counsel and make sure any changes are approved
• When you and legal counsel have finalized the Code of Conduct and it complies with all applicable laws, you can check this off your list and move on to the next step.

Establishing Expectations of Conduct

• Research relevant legislation, industry standards, and best practices to ensure that your Code of Conduct complies with relevant laws and regulations
• Consult with relevant stakeholders such as trade associations, legal counsel, and other experts to identify key areas of conduct
• Draft a list of expected behaviors and conduct that should be included in the Code of Conduct
• Ensure that the expectations are clear, comprehensive, and appropriate for the organization
• Once the expectations are established, you will be ready to create an outline of expected behaviors for the Code of Conduct.

Creating an outline of expected behaviors

• Identify a list of behaviors that are expected of all employees and contractors
• Determine any additional expectations you may have for certain roles or departments
• Consider any specific industry requirements or regulations that should be included
• Draft an outline of expected behaviors based on the above considerations
• Review the outline with your HR team and other stakeholders for feedback
• Make adjustments to the outline based on feedback
• Once you and your team have agreed on a final version, you can check off this step and move on to the next one.

Defining any prohibited activities

• Make a list of activities that are prohibited by the company’s code of conduct.
• These activities can include things like discrimination, harassment, and bullying.
• Make sure to include any company policies that should not be violated, such as those about data protection.
• Be sure to include any activities that are illegal under UK law.
• Create a section in the code of conduct that clearly defines these prohibited activities.
• When you have finished this step, you should be able to refer to the code of conduct to determine which activities are prohibited.

Defining Consequences of Violations

• Set out the consequences of any violations of the Code of Conduct. This will depend on the nature and severity of the violation and the company’s policy.
• Consider whether any disciplinary action should be taken; this could include anything from a verbal warning to summary dismissal.
• Make sure you consult with the relevant stakeholders when creating the disciplinary procedure.
• Ensure the disciplinary procedure is clear and easy to understand.
• Document and store all disciplinary decisions, as well as any warnings or sanctions issued.
• Ensure the disciplinary procedure is regularly reviewed and updated if necessary.

You can check this step off your list once you have defined all the potential consequences of any violations of the Code of Conduct and documented them.

Establishing a system of warnings and/or sanctions

• Decide on the appropriate warnings and/or sanctions to have in place based on the severity of the violation
• Determine which warnings and/or sanctions would be appropriate for which violations
• Inform all employees of the system of warnings and/or sanctions that are in place
• Ensure the system of warnings and/or sanctions is clearly outlined in the Code of Conduct
• Establish a process for implementing the warnings and/or sanctions if a violation occurs

Once these steps have been completed, you can check this off your list and move on to the next step of defining the process for determining the severity of the violation.

Defining the process for determining the severity of the violation

• Create a grading system to categorize violations (e.g. minor, moderate, severe)
• Establish criteria for each level of violation
• Include a range of potential sanctions for each level of violation
• Consider the potential consequences of each potential sanction
• Ensure that the process is fair and consistent
• When complete, ensure that the system has been approved by the relevant stakeholders
• Once approved, document the system and communicate it to staff.

You will know when you can check this off your list and move on to the next step once the system of determining the severity of the violation has been established, approved, documented and communicated to staff.

Ensuring a Safe Work Environment

• Create a policy that outlines the safety regulations that must be followed in the workplace
• Identify any potential risks to employees and visitors, and put procedures in place to minimize them
• Ensure that all employees and visitors are aware of their responsibility to adhere to the safety regulations
• Provide training and resources to help employees and visitors understand their responsibilities
• Establish a system for regular safety inspections and audits
• Ensure that any safety concerns are reported and addressed in a timely manner
• Develop a system for reporting and handling any safety incidents

When you have completed these steps you can move on to the next step: creating a system to report and address safety concerns.

Creating a system to report and address safety concerns

• Draft an incident reporting form and a response plan, which should include a timeline for investigating and resolving incidents
• Ensure the form is accessible to employees and encourages them to report any safety concerns
• Clearly define who is responsible for handling incident reports and the steps that should be taken to address safety concerns
• Establish a policy for confidentiality and anonymity for reporting parties
• Set up a system for tracking, monitoring, and recording safety concerns and their resolution
• Provide training to employees on the incident reporting system
• Once the system is in place, you can check this off your list and move on to the next step of establishing procedures for reporting and resolving incidents.

Establishing procedures for reporting and resolving incidents

• Establish a secure and confidential reporting process that allows employees to report any incidents of misconduct or safety concerns
• Ensure that the reporting process is clearly communicated to all employees and that they understand how and when to report incidents
• Develop procedures for investigating and responding to any reports of misconduct or safety issues
• Determine how to handle incidents, including how to escalate issues as needed
• Develop a process for resolving incidents, including any disciplinary action that may be required
• Set a timeline for responding to and resolving any incidents
• Document all procedures for reporting and resolving incidents
• Once all procedures for reporting and resolving incidents have been established, communicated to employees, and documented, this step can be marked as completed.

Establishing protocols for addressing safety issues

• Establish a protocol for addressing safety issues, such as fire safety or health and safety.
• Make sure to include procedures for responding to emergencies, as well as clear guidance on who is responsible for implementing safety protocols.
• Make sure that everyone in the organisation is aware of the safety protocols, and of their roles and responsibilities when it comes to safety.
• Make sure to have a designated person or team who is responsible for ensuring safety protocols are followed.
• Once you have established and communicated the safety protocols, you can check this off your list and move on to the next step.

Establishing a Process for Reporting Violations

• Establish a reporting system for violations of the code of conduct, such as a hotline, anonymous website, or other reporting methods.
• Create a process for receiving and responding to reports of violations.
• Establish a clear procedure for investigating reports of violations.
• Ensure that the investigation process is conducted in a confidential and sensitive manner.
• Establish a system for tracking the resolution of each reported violation.
• When these procedures have been established, you can check this step off your list and move on to the next step.

Establishing a confidential system for reporting violations

• Establish a secure, confidential system to allow people to report violations of the Code of Conduct - this could be a physical mailbox, an email address, an anonymous form on your website, or an anonymous hotline.
• Make sure that all reports are handled sensitively and with discretion.
• Ensure that the system is accessible to everyone in your organisation, including contractors, volunteers and freelance workers.
• Make sure that everyone knows how and where to report violations.
• When the system is up and running and accessible, you can check this off your list and move on to the next step.

Establishing a process for investigating reports of violations

• Consider your workplace size and resources when planning the investigation process.
• Make sure the investigation process is fair to all parties and is compliant with applicable laws.
• Determine who will investigate the reports (e.g. HR personnel, outside consultants, etc.)
• Establish a procedure for conducting the investigation (e.g. who will be interviewed, how information will be collected and reviewed, etc.).
• Draft a policy or protocol for investigations and make sure it is circulated to all relevant parties.
• Provide training and guidance to those responsible for conducting the investigations.

You can check this step off your list when you have a clear process for investigating reports of violations established and communicated to all relevant parties.

Establishing a Complaint Resolution System

• Establish who will investigate and resolve complaints (e.g. HR, a dedicated team, or a third-party)
• Set out a timeline for resolving complaints
• Designate an appeals process
• Ensure confidentiality for those involved in the complaint resolution process
• Make sure that all parties are informed of the outcome and any actions taken
• When necessary, provide additional resources or support to those involved

You will know that you can move on to the next step when you have a clear system in place for how to investigate and resolve complaints.

Establishing a process for addressing complaints

• Create a clear process for filing and responding to complaints in accordance with the company’s code of conduct
• Establish a timeline for filing and responding to complaints
• Designate a responsible party to receive and respond to complaints
• Develop a procedure for documenting and tracking complaints
• Create a system to ensure timely resolution of complaints
• Once the process is established, review and approve it
• When the process is approved and the timeline is in place, this step is complete and you can move on to the next step.

Establishing a system for resolving conflicts

• Outline the process for resolving conflicts, such as mediation, arbitration, or dispute resolution
• Determine the types of conflicts that will be addressed, including but not limited to harassment, discrimination, bullying, and intimidation
• Describe the roles and responsibilities of those involved in the conflict resolution process, such as a mediator, arbitrator, or mediator-arbitrator
• Establish criteria for when and how the resolution process will be used
• Include timelines for when the resolution process must be completed
• Designate a person or team to oversee the resolution process
• When the conflict resolution system is completed, document it in the Code of Conduct

You’ll know you can check this off your list and move on to the next step when the conflict resolution system is documented in the Code of Conduct.

Training and Education for Employees

• Develop a training plan for educating employees on the Code of Conduct and its expectations
• Assign a coordinator responsible for the training program and its implementation
• Create materials, such as brochures, handbooks, and videos, to explain the Code of Conduct
• Designate a training session schedule and assign employees to attend
• Conduct training sessions on a regular basis
• Track employee attendance and participation in training
• Implement a system for evaluating the effectiveness of the training program
• Ensure that employees understand the Code of Conduct and are held accountable to it
• When all employees have been trained and understand the Code of Conduct, the training and education step is complete.

Developing a plan for educating employees about the Code of Conduct

• Create a program which outlines how you will communicate and educate staff about the Code of Conduct
• Consider the best methods for implementation such as interactive workshops, online training, or other methods
• Make sure to include information on the consequences if the Code of Conduct is not followed
• Ensure that staff are aware of the available resources to help them understand the Code of Conduct
• Develop a plan for providing refresher training on the Code of Conduct periodically
• Once you have completed these steps, you have developed a plan for educating employees about the Code of Conduct and can move on to the next step.

Creating a system for monitoring employee compliance

• Decide what system or process you will use to monitor employee compliance with the Code of Conduct
• Establish the details of the system, such as who will be responsible for monitoring, how often they will do it, and how they will report any non-compliance
• Make sure that employees understand their obligation to comply with the Code of Conduct and the consequences they will face if they do not
• Create a system to track employee compliance with the Code of Conduct
• Establish a process for employees to report any violations of the Code of Conduct
• Make sure that all reports of non-compliance are handled in a timely and appropriate manner
• Once the system is in place, review it regularly to ensure that it is effective

When you can check this off your list and move on to the next step:

• When the system for monitoring employee compliance with the Code of Conduct is established and documented, you can move on to developing a Communications Plan.

Developing a Communications Plan

• Research and select a method of communications that will reach all employees, including those who are remote, part-time, or employed on a casual basis
• Identify the messages that need to be communicated about the Code of Conduct
• Decide on a timeline for introducing the Code of Conduct to the organisation
• Create an appropriate message to accompany the Code of Conduct
• Draft a plan which sets out the communication process and identifies who is responsible for each stage
• Identify any training or support needs that may be required to ensure full understanding of the Code of Conduct
• Once the plan is in place, test it to ensure it meets the organisation’s needs
• Once the plan is approved and tested, you can check off this step and move on to the next.

Establishing protocols for communicating the Code of Conduct

• Contact the relevant stakeholders and arrange a meeting to discuss the Code of Conduct
• Outline the importance of the Code of Conduct and the need to communicate it to everyone in the organization
• Agree on the best methods for communicating the Code of Conduct and determine who is responsible for each task
• Create a timeline for implementing the communications plan
• Track progress and ensure that everything is completed on time

You’ll know that you have completed this step when all stakeholders have agreed on the communication plan, a timeline has been established, and all tasks have been assigned to the relevant people.

Creating systems for distributing information and updates

• Set up a system for distributing the Code of Conduct to all current and new employees, such as a shared document folder, intranet, or email.
• Ensure that the Code of Conduct is easily accessible to all staff members, for example by adding links to the company website, intranet and/or email signatures.
• Consider providing different formats, such as hard copies or a digital version, to ensure that everyone has access to the Code of Conduct.
• Create a plan for regularly distributing updates to the Code of Conduct, as well as a process for communicating changes.
• Ensure that staff are informed of their rights and responsibilities under the Code of Conduct, including how to report a breach or concern.

You will know you can check this off your list and move on to the next step when:

• You have set up a system for distributing the Code of Conduct to all current and new employees.
• You have ensured that the Code of Conduct is easily accessible to all staff members.
• You have considered providing different formats for the Code of Conduct.
• You have created a plan for regularly distributing updates to the Code of Conduct.
• You have informed staff of their rights and responsibilities under the Code of Conduct.

Reviewing and Revising the Code of Conduct Regularly

• Identify a timeline for reviewing and revising the code of conduct. Consider how often the code should be updated and when the updates should be reviewed.
• Develop a process for collecting feedback from stakeholders on the code of conduct and its updates.
• Establish a timeline for when the code of conduct should be reviewed and revised.
• Develop a process for communicating changes to the code of conduct to stakeholders.
• Put procedures in place for enforcing the code of conduct.

You can check this off your list and move on to the next step when you have identified a timeline for reviewing and revising the code of conduct, developed a process for collecting feedback from stakeholders, established a timeline for when the code of conduct should be reviewed and revised, developed a process for communicating changes to the code of conduct to stakeholders, and put procedures in place for enforcing the code of conduct.

Establishing a timeline for review and revision

• Decide how often the Code of Conduct should be reviewed and revised, taking into account changes in the workplace, changes in laws, and any other relevant factors
• Create a timeline for conducting reviews of the Code of Conduct, and keep track of when reviews and revisions should be completed
• Schedule regular meetings with relevant stakeholders to discuss any changes that need to be made to the Code of Conduct
• Ensure that all stakeholders are aware of the timeline for reviewing and revising the Code of Conduct
• When all stakeholders agree on the timeline, document it and make it available to all employees
• You’ll know that this step is complete when you have established a timeline for reviews and revisions of the Code of Conduct and all stakeholders are aware of it.

Evaluating effectiveness of the code and making necessary changes

• Check in with team members to ensure the Code of Conduct is effective and relevant
• Regularly review the Code of Conduct to identify any areas that need changes
• Make any necessary changes to the Code of Conduct in order to maintain an effective and up-to-date policy
• Keep a record of any changes made to the Code of Conduct
• When you have reviewed and updated the Code of Conduct, you can then move on to the next step.

FAQ

Q: What are the differences between creating a Code of Conduct in the UK and the USA?

Asked by Taylor on 15th April 2022.
A: Creating a Code of Conduct in the UK and the USA can involve different steps and considerations. In the UK, the Company Law Reform Act 2006 requires companies to produce a statement of directors’ general duties, which sets out the standards of behaviour expected of company directors. This statement should address issues such as conflicts of interest, confidential information and corporate opportunities. In the USA, companies are expected to set out their ethical expectations in a Code of Conduct document, which usually covers topics such as insider trading, bribery, ethical behaviour and responsible conduct. It’s important to ensure that any Code of Conduct is tailored to your particular industry, sector or business model and takes into account any relevant laws and regulations in your jurisdiction.

Q: How does the GDPR impact on my Code of Conduct?

Asked by Austin on 29th June 2022.
A: The General Data Protection Regulation (GDPR) requires organisations to ensure that individuals are informed about their personal data being processed and have certain rights over it. A Code of Conduct should include a section outlining how personal data is handled and what rights individuals have over it. This should include clear explanations about why data is being collected, how it is stored and used, how long it is kept for, and how individuals can access their data or request its deletion. It should also make clear that data breaches must be reported to relevant authorities within 72 hours.

Q: How do I ensure my Code of Conduct is up-to-date?

Asked by Mia on 15th August 2022.
A: It’s important to regularly review your Code of Conduct to ensure it remains up-to-date with any changes in legislation or industry best practices. Consider setting up a review process so that you are regularly assessing the contents of your Code of Conduct to make sure it’s still fit for purpose. You could also assign someone to be responsible for making sure all employees are aware of any updates or changes made to your Code of Conduct. Finally, you should ensure that all staff members sign an agreement outlining their commitment to following the Code of Conduct when they join your organisation or when changes are made.

Q: What penalties might I face if I fail to abide by my own Code of Conduct?

Asked by Samantha on 2nd October 2022.
A: It’s important to take your company’s Code of Conduct seriously as failure to abide by its rules can have serious consequences for your business as well as its employees. Depending on the severity of any breach, you may face penalties ranging from an informal warning from a regulator or professional body to a fine or even prosecution if you are found guilty of breaking the law. In addition, failure to abide by your own Code of Conduct could put your reputation at risk and potentially lead to customers and suppliers withdrawing their support for your company.

Q: Are there any specific requirements for drafting an employee Code of Conduct?

Asked by Noah on 27th November 2022.
A: Yes, there are certain elements which need to be included when drafting an employee Code of Conduct. These include clear guidance on what behaviour is expected from employees (such as respect for colleagues and compliance with relevant laws), information on how breaches will be dealt with (including disciplinary procedures) and details on how employees can raise potential issues or concerns with their employer without fear of retribution or discrimination. It’s also important that you make sure all employees understand what is expected from them – this could involve providing regular training sessions or sending out regular reminders about key points in your employee Code of Conduct.

Q: Can I include additional policies in my Code of Conduct?

Asked by Madison on 13th January 2023.
A: Yes, you can include additional policies which are specific to your organisation in your Code of Conduct document. For example, if you operate in an industry where bribery is common, you may want to include a policy outlining how bribes will be dealt with and what sanctions will be imposed if anyone is found guilty of accepting bribes; alternatively, if you have a zero-tolerance policy on discrimination you could include details about this in your document too. However, it’s important to ensure that any additional policies are relevant and appropriate for your particular industry and organisation – otherwise they could be deemed irrelevant or unenforceable in a court of law.

Example dispute

Suing a Company for a Breach of Code of Conduct

• Identify the code of conduct that was violated, such as a company policy or an industry standard.
• Establish the plaintiff’s right to bring the suit, including any direct or indirect harm that was caused by the company’s breach of the code of conduct.
• Establish the defendant’s liability for the violation of the code of conduct.
• Prove that the defendant breached the code of conduct and the plaintiff was harmed as a result.
• Calculate the damages the plaintiff has suffered, such as financial losses, emotional distress, or physical injuries.
• Determine whether the plaintiff is entitled to punitive damages.
• Negotiate a settlement or pursue a court decision to obtain relief from the defendant.

Templates available (free to use)

Code Of Conduct For Hospitals Hospital Systems
Supplier Code Of Conduct For Uk Based B2B Customer
Supplier Code Of Conduct Policy
Supplier Code Of Conduct Poster

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