Company codes of conduct and professional ethics codes: What is the connection?

Is there a connection between professional ethics and company codes of conduct?

At one time, I represented the SCCE as a consultative partner to the OECD Working Group on Bribery in Paris.  I was doing work with the Working Group in the development of their “Good Practice Guidance” relating to compliance and ethics programs to prevent bribery. There, I first came across the idea that professional ethics should play a role in a company’s code of conduct.  The coverage of what should be in compliance programs included speak-up systems, along with this intriguing reference: 

13. a strong and effective protected reporting framework, including:

i. internal, confidential, and where appropriate, anonymous, reporting by, and protection against any form of retaliation for, directors, officers, employees, and, where appropriate, business partners, not willing to violate professional standards or ethics under instructions or pressure from hierarchical superiors, as well as for reporting persons willing to report breaches of the law or professional standards or ethics occurring within the company on reasonable grounds; . . . (emphasis added). https://legalinstruments.oecd.org/en/instruments/oecd-legal-0378

I could not recall seeing such a reference in any company codes of conduct or any other compliance program standards I had seen elsewhere.

In the years since I have not seen this discussed before, nor do I think it is common in company codes of conduct.  (If anyone has done this, I invite them to contact me.) 

What are the questions?
Starting from the brief reference in the Good Practice Guidance, this covers two possible points: 

1. Should your company code incorporate professional ethics standards, so that any unprofessional actions would be cause for company discipline?
2. Should professionals be protected from discipline and retaliation for refusal to take action that violates their professional ethical codes?

Is anyone doing this?

In order to test whether this was already being done, I used ChatGPT for a search.  Here is one example it delivered, from Corporatek (having used AI previously, I knew to check the original source, which confirmed this result):

“Code of Conduct

It is Corporatek’s policy to conduct its worldwide operations in accordance with the highest business ethical considerations, to comply with the laws of the countries in which Corporatek operates and to conform to locally accepted standards of good corporate citizenship.

This policy applies to all divisions of Corporatek and to all employees regardless of function, grade or standing. References in this policy to “Corporatek” or “the Company” are meant to include references to all Divisions of the Corporatek Group.

1. The Company’s activities and operations will be carried out in strict compliance with all applicable laws and the highest professional ethics standards. (emphasis added) https://www.corporatek.com/en/code_of_conduct/ 

There was a second example from NYU Langone Health:

Laws, Regulations, & Policies

All members of the NYU Langone Health community must obey the letter and spirit of the laws, regulations, and policies that are applicable to them.

You have a responsibility to:

• Familiarize yourself with the federal, state, and local laws and regulations that relate to your position and facility, and uphold both the written words and the meaning behind those words.
• Maintain any licenses and/or credentials required for your position.
• Familiarize yourself with and avoid the actions that constitute professional misconduct if you are a licensed professional governed by a state board. (emphasis added) https://nyulangone.org/files/code-of-conduct.pdf

The argument for doing this in healthcare, as would be the case for Langone Healthcare, is clear.  Their business is directly related to the professional standards for healthcare providers.  But healthcare is not alone in using professionals. Every company that has a lawyer on staff, for example, also has reason to consider this approach. 

Why do this?

If a company is committed to doing the right thing, acting ethically, and preventing misconduct, this helps send the right, consistent message.  More importantly, protecting conduct consistent with professional ethics helps professionals resist dangerous groupthink.  The professional engineer who is urged to “be part of the team and think like a manager” is bolstered in her resistance to unsafe activities by being reminded that she is expected to follow her professional code, and that she cannot be disciplined or retaliated against for doing so. 

This is not to suggest that entire codes of professional ethics need to be added to a company code.  Nor does it mean the company code would have to enumerate or reference specific professional codes.  General language, as in the OECD example, should be enough.

Company codes often call for ethical conduct.  This helps reinforce that value commitment.

This approach also improves whistleblower protection and willingness to speak up.  For those concerned about having a “speak up” culture, this is a keystone element.  It can be difficult to promote a speak-up culture; this helps reinforce that message. 

Showing such respect for professional ethical standards can also appeal to professionals when trying to recruit them.  It sends a signal to these professionals that the company is serious in its commitment to doing the right thing.  Strengthening the professionals, in turn, helps create a bulwark against misconduct. 

Conclusion

Should your company or organization include a reference to the following professional ethics standards?  Realistically, your compliance program will probably not be considered ineffective by DOJ or another such enforcement entity when it evaluates your program if you do not do this.  But it might be a positive weight in the scale, depending on the type of case at issue. 

Doing this can, however, send a positive message to your employees, especially those who are subject to such professional standards.  Given that this can be a straightforward and limited addition to a code, it is well worth considering.