Key Topic: What Makes a Good Code of Conduct?

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A code of conduct should be:

  • A foundation for more detailed guidance for decision-makers who implement the labor due diligence system within the company. 

  • A public document that clearly states the actors within the company who are responsible for its development, oversight, and implementation.

  • A set of standards that articulate a company’s expectations and requirements for its suppliers and subcontractors on labor and human rights.

The Content of Codes

  • The content of codes has become more standardized in recent years, consolidating around core content areas that generally include:

    • Governance and management of the code

    • Scope of coverage

    • Labor standards, including on wages, hours, overtime, benefits, health and safety, and respect for workers’ freedom of association

    • Additional workplace policies, such as a right to humane treatment and freedom from sexual harassment

    • Management systems, procedures, and practices for implementation and enforcement

    • Legal liabilities and penalties for failure to implement code provisions

    • Links to contractual controls, supply chain risk reduction, and enforcement mechanisms, such as terminating relationships with suppliers due to labor violations

  • With respect to labor standards, a strong code should include protection for workers’ freedom of association and right to bargain collectively, and address the other areas covered by the International Labor Organization’s (ILO) core labor standards, which are a set of Fundamental Principles and Rights at Work.

The following examples demonstrate the various forms that codes can take: