Code of Conduct is only as strong as leadership’s example

Sometimes it takes a viral moment to remind us why Codes of Conduct exist in the first place. 
A highly publicized incident can spark conversations far beyond social media. A breach of company standards offers a deeper lesson about trust, accountability and consequences — especially when leaders fall short of the very standards they’re expected to model. 

A Code of Conduct isn’t just a legal safeguard or a document buried in an employee handbook. It’s a public declaration of a company’s values and a promise to employees and stakeholders about how the organization operates. 

Your Code applies to everyone, everywhere — leaders, managers and frontline workers. A strong Code should spell out: 

• Expectations of behavior, including outside the office 
• Standards for leadership conduct 
• Conflicts of interest and power dynamics 

And it must be enforced fairly and consistently, no matter someone’s job title or tenure. 

Leadership sets the cultural tone 

Employees notice what leaders do more than what they say. When those at the top visibly break the rules or skirt ethical norms, it creates confusion and cynicism. You can almost hear the questions bubble up: 

• Is the Code of Conduct only for the rank-and-file? 
• Will leadership protect its own at the expense of fairness? 

When the very people expected to uphold the Code violate it, it chips away at trust and culture. The damage can be widespread. It undermines internal investigations, chills psychological safety and casts a shadow over every compliance initiative that follows. 

Reputation is culture, externalized 

In today’s hyper-connected world, how employees and leaders behave, both inside and outside of work, isn’t just personal anymore. It’s public. And that’s a reputational risk. When anyone falters, the whole organization feels it. The consequences of ethical failures can be fast and public. But the road to rebuilding trust takes longer. 

Your Code of Conduct is more than policy — it’s your culture, codified. And the clearest expression of that culture is what people do when no one’s watching. The ethical health of your company is only as strong as the daily actions of its leaders and employees alike. 

Training alone isn’t enough 

Code of Conduct policies and training are your foundation but they’re only meaningful when people live them. Employees must understand how the Code applies in real-world, messy, sometimes uncomfortable situations. 

To make your Code stick, companies should: 

• Build scenario-based training that includes offsite behavior 
• Reinforce executive responsibilities with targeted onboarding and refreshers 
• Create a speak-up culture where concerns can be raised about anyone without fear 

And it must be interactive. People retain what they engage with. Dynamic, thoughtful training brings the Code to life, especially in those grey areas where judgment calls matter most. When people understand the “why” behind your Code, they’re far more likely to live it every day. 

What this means for your organization 

Now is the time to move from intention to action. Start with these six practical steps: 

1. Reevaluate your Code of Conduct 
   Ensure it explicitly addresses leadership standards, responsibilities to coworkers and the organization, and evolving reputational risks. Update any vague or outdated language. 

2. Make your training real, relevant, and resonant 
   Use scenario-based, emotionally engaging content that reflects the complexities of today’s workplace, including the gray areas where judgment is tested. 

3. Hold leaders accountable  
   Reinforce that no one is exempt from the Code. Executive behavior should set the standard, not skirt it. 

4. Create psychologically safe reporting channels 
   Build a speak-up culture where concerns can be raised about anyone, at any level, without fear of retaliation. 

5. Embed the Code into everyday decisions 
   Go beyond onboarding and annual refreshers. Bring the Code to life through ongoing conversations, manager toolkits, and real-time guidance. 

6. Make it everyone’s responsibility 
   Position the Code not as a policy to memorize, but as a daily commitment to your organization’s values. Reinforce that culture is a collective effort.