• sets out an organisation’s ethical values, standards and commitments to stakeholders that will underpin the way that it does business
• confirms leadership commitment to the above
• describes how this will be achieved and monitored through an ethics programme
• identifies the main ethical issues faced by the organisation/sector
• identifies other policies and documents that support and detail aspects of the ethics policy – such as a code of ethics, a speak up policy, a bullying and harassment policy, a gifts and hospitality policy, an environment policy etc. Click here for a sample list of related policies.

A policy is usually a public declaration of the above, and can often be found on corporate websites.

Ethics programme

This consists of the activities and resources used to support, implement and embed the ethics policy, and so ensure that business practices and decisions are in line with ethical values and standards.

An effective ethics programme will typically be made up of the following elements:

A code of ethics

A central element of the ethics programme will be a code of ethics (or similar title). Its main purpose is to provide guidance to staff. Unlike a code of conduct which is generally “do this or else” in tone, a code of ethics will usually be predominantly aspirational and supportive. The code illustrates how a company's values translate into concrete policies, procedures and standards.

The main aims of an ethics policy, code and programme

• Values – to embed a set of ethical values into the organisation’s goals and strategies and the way it seeks to do what it does
• Ethical behaviour - to provide guidance and support to staff for making decisions and carrying out their work in a way that is compatible with the organisation’s ethical values and standards
• Corporate Culture – to consolidate and strengthen a culture of integrity and openness so as to facilitate a sustainable business
• Risk – to minimise operational and integrity risks
• Reputation – to enhance trust among stakeholders so as to facilitate business success
• Sustainability – to minimise the organisation’s negative impacts on and maximise its positive contribution to the social, economic and environmental wellbeing of wider society

Making an ethics policy work

Most large businesses have a code of ethics (c.85% of the FTSE100), yet reports of ethical lapses continue. To realise the aims of policy described above it is not sufficient to draw up an ethics policy and post it on the intranet. An effective ethics code and programme are required.

Ways of achieving this are described here in developing a code of business ethics and making it work.