Signed Doesn’t Mean Understood: Why a Code of Conduct isn’t Enough      

A new Traliant Code of Conduct Report reveals a hard truth: many still feel lost when faced with real-world ethical dilemmas. It’s time to ask ourselves: Are our Code of Conduct efforts truly setting employees up for success? 

The report research comes from a March 2025 survey of over 1,000 US employed adults working in hospitality, healthcare, retail, industrial/manufacturing, office/professional settings with 100+ employees. Here’s a look at the top findings: 

A gap between awareness and action 

While 37% of employees reported feeling unsure about how to act in an ethical gray area, this uncertainty was even more pronounced among younger generations, especially Gen Z. The implication is clear: even when employees “know” what the Code says, they may struggle to apply it when real-world situations aren’t black and white. Without practical guidance, employees are left vulnerable to making mistakes that could harm the organization and themselves. 

Observed, but often unreported 

A concerning 57% of employees said they had witnessed behavior they thought might violate their company’s Code of Conduct — yet 39% never reported it. This suggests a troubling gap between policy and practice: even when employees recognize unethical behavior, they may not feel safe or empowered to report it. HR must recognize that fear of retaliation, skepticism about follow-up, and a lack of trust in reporting channels are real barriers that need to be actively addressed. 

Traditional training doesn’t stick 

Although 79% of employees reported receiving Code of Conduct training, only about 59% said it was highly relatable to their daily work. Employees need vivid, scenario-based training that mirrors the pressures and decisions they face every day. Without this connection, training becomes a compliance checkbox instead of a catalyst for ethical decision-making. 

Generational differences are real 

More than half of Gen Z employees (51%) and 41% of Millennials admitted struggling with ethical dilemmas, compared to only 28% of Baby Boomers. Younger employees are encountering ethical challenges shaped by a different social, technological and cultural landscape. Organizations must meet them where they are, with clearer guidance and culturally relevant examples that resonate with their values and experiences. 

6 steps to close code of conduct gaps 

Organizations invest significant time and money into creating detailed and thoughtfully crafted Codes of Conduct. Legal teams, compliance experts and HR professionals often spend months developing a written Code that can be 20, 30, even 50 pages long. Yet, all that effort becomes wasted if employees don’t engage with its principles beyond signing their signature. If the document is simply filed away in an employee handbook, never revisited, it loses its power to guide behavior, shape culture, and protect the organization from reputational and legal risks.  

Here are practical steps HR teams can take to ensure the Code of Conduct becomes a living, breathing part of the workplace culture — not just a policy on paper.  

1. Move beyond the policy — bring ethics to life
   Don’t let your Code gather dust. Make it easy to find, easy to understand and bring it to life regularly through training and awareness programs. Simply having a Code of Conduct isn’t enough. Employees need to see what ethical behavior looks like in action. Providing clear, relatable examples — customized to specific roles, departments and industries — helps bridge the gap between concept and application.
   
   
2. Create training that reflects reality 
   Generic isn’t good enough. One-size-fits-all training doesn’t cut it anymore. Employees need scenario-based learning rooted in the real dilemmas they face. Relatable, engaging content that prompts discussion and critical thinking will stick far longer than passive content or dense legal text. 
   
   
3. Commit to ongoing reinforcement
   A single training session once a year isn’t enough to build a culture of ethics. Reinforcing expectations through regular communications, refresher trainings, leadership modeling and real-time reminders keeps ethical behavior top of mind and integrated into daily work. 
   
   
4. Recognize and address generational expectations 
   Ethics training and communication need to feel modern and relevant — not preachy or outdated. Recognize that Gen Z and Millennials may view workplace ethics through a different lens and expect more transparency, accountability and faster responsiveness from their employers. HR should listen carefully to their expectations and evolve the company’s ethical leadership approach to meet them.
   
   
5. Build trustworthy reporting systems
   Educate employees on how to report potential violations, and more importantly, show — through leadership action — that doing so is safe and encouraged. Trust is critical. Employees must believe that reporting a concern is safe, that their confidentiality will be protected and that their concerns will be taken seriously without retaliation. Organizations need to actively promote these systems, encourage their use and demonstrate follow-through when issues arise.
   
   
6. Lead from the top
   Managers and executives must model ethical behavior. When leaders show that how results are achieved matter just as much as the results themselves, it transforms culture from the top down.