Standards of conduct: Overview, definition, and example
What are standards of conduct?
Standards of conduct are the rules and expectations that guide how individuals or businesses should behave in professional settings. These standards help ensure ethical behavior, professionalism, and compliance with legal and company policies.
For example, a company’s code of conduct may require employees to act with honesty, treat colleagues with respect, and avoid conflicts of interest.
Why are standards of conduct important?
Standards of conduct help create a positive work environment by setting clear expectations for behavior. They also protect businesses from legal risks, such as harassment claims, discrimination lawsuits, or ethical violations.
For SMBs, having well-defined standards of conduct can improve workplace culture, enhance customer trust, and prevent conflicts. Without them, businesses may face internal disputes, reputational damage, or even legal consequences.
Understanding standards of conduct through an example
A marketing agency establishes a set of standards requiring employees to maintain confidentiality, avoid accepting gifts from clients that could create bias, and treat coworkers professionally. If an employee violates these rules, they may face disciplinary action, including termination.
In another example, a retail business outlines standards of conduct for customer service, ensuring employees remain courteous, handle complaints professionally, and follow ethical sales practices. This helps maintain a strong brand reputation and encourages customer loyalty.
An example of a standards of conduct clause
Here’s how a standards of conduct clause might appear in an employment contract or company policy:
“All employees are expected to adhere to the Company’s Standards of Conduct, which include acting with integrity, respecting colleagues and customers, and complying with all applicable laws and policies. Failure to comply may result in disciplinary action, up to and including termination.”
Conclusion
Standards of conduct establish clear behavioral expectations in a business, helping to maintain professionalism, ethical practices, and compliance with legal requirements. They create a positive workplace culture and protect businesses from potential risks.
For SMBs, implementing and enforcing strong standards of conduct ensures a respectful and professional work environment, reducing conflicts and enhancing business reputation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.