Code of Conduct: US

This Code of Conduct policy sets clear expectations for ethical behavior, legal compliance, and respectful workplace conduct across your organization, and it supports the kind of internal controls regulators expect when misconduct happens. While many employers adopt a code as a practical, culture-setting best practice, the federal U.S. Sentencing Guidelines (Chapter 8) also encourage organizations to maintain an effective compliance and ethics program, including standards and procedures designed to prevent and detect criminal conduct, and to promote reporting without retaliation.

The History Behind Codes of Conduct in the US

Ethics & Professional Conduct expectations at work did not start as a feel-good idea. Employers began formalizing codes of conduct as workplaces grew larger, more regulated, and more exposed to fraud, harassment, safety failures, and conflicts of interest. Federal workplace laws pushed the shift, including Title VII of the Civil Rights Act of 1964 (and later Supreme Court decisions that increased employer incentives to prevent and correct harassment), the Occupational Safety and Health Act of 1970, and the Fair Labor Standards Act for accurate time and pay practices. Those laws did not require a single, universal "code," but they made consistent standards and reporting channels a practical necessity.

Corporate misconduct in the 1970s also changed the baseline for what "good judgment" had to look like on paper. The Foreign Corrupt Practices Act of 1977 put bribery and books-and-records controls into the mainstream for US employers doing business globally, and it helped normalize rules on gifts, approvals, and accurate expense reporting. Antitrust enforcement and insider trading prosecutions reinforced the same theme: regulators cared about what employees did day-to-day, not just what executives promised at the top. Employers responded with clearer internal rules, documentation, and training that could survive audits, investigations, and litigation.

In the 1990s and 2000s, the US Sentencing Commission's Organizational Guidelines (including Chapter 8) pushed companies toward written standards, oversight, internal reporting, and anti-retaliation expectations, because those features can reduce penalties when misconduct happens. Public-company rules after Enron and WorldCom, including Sarbanes-Oxley, added more pressure around reporting, retaliation, and financial integrity. 

In the 2010s, third party "trust" audits used in customer due diligence pushed codes of conduct into more handbooks, especially for tech and services companies. SOC 2 audits include a control/expectation that organizations demonstrate a commitment to integrity and ethical values (commonly tied to a written code of conduct and employee acknowledgement). As SOC 2 and similar frameworks like ISO 27001 became more common in procurement and security reviews, employers increasingly codes of conduct as a must-have.

Which Law is a Code of Conduct Meant to Comply With?

If you're creating a Code of Conduct for US based employees, the US Sentencing Guidelines for Organizations are a helpful reference, especially U.S.S.G. Chapter 8, Part B (8B2.1), which outlines the elements of an effective compliance and ethics program.

How to Write an US-Specific Code of Conduct Policy

• Start with "why" and introduce the concept.
• Define who the Code covers, including employees and anyone representing your organization.
• Set baseline expectations for ethical conduct, good judgment, and lawful behavior.
• Require honesty in work-related information and records.
• Require a respectful, safe workplace and compliance with core workplace rules like anti-discrimination, harassment prevention, safety, and privacy.
• Require employees to speak up about suspected unsafe, unethical, or unlawful conduct, and prohibit retaliation for good-faith reports.
• Address conflicts of interest, including avoiding personal gain and outside activities that interfere with work responsibilities.
• Protect confidential information and intellectual property.
• Set rules for responsible use of organizational resources for legitimate business purposes.
• Commit to fair competition and prohibit improper conduct like bribery, corruption, insider trading, and anticompetitive behavior.
• Set a gifts and business courtesies standard that avoids cash equivalents and prevents real or perceived influence.
• Explain that Code violations can lead to discipline, up to and including termination, and may also result in legal action.

When to Include a Code of Conduct in Your Employee Handbook

The law does not require you to publish a Code of Conduct or issue a specific notice in your employee handbook. If your Code of Conduct is relatively short, it will fit neatly into a handbook. Otherwise, you may want to publish it as a standalone document that employees sign. Many Blissbook customers use our platform to publish fully-branded, digital Codes of Conduct alongside their employee handbook.

Other Considerations

Codes of Conduct are highly customized per organization and work best when they reflect your organization's culture. The most effective ones begin with "why" by tying your standards of behavior to your mission, values, purpose, and brand.

Exceptions

None.