The Society for Human Resource Management states that a code of ethics raises ethical expectations, legitimizes ethical positions, encourages ethical decision-making and prevents misconduct while providing for enforcement. As a consumer, vendor or business owner, it may be important to know how to analyze a firm's code of ethics to establish an understanding of the ethical considerations it employs in business decisions.
Identify the tone of the organization’s code of ethics. Review the document to get a feel if the firm buys into a position of self-righteousness. See if the company's code of ethics gives an impression that the firm strives to meet a higher moral standard, or whether it simply serves the company's profit motive.
Review the code of ethics to determine if the document is clearly written and well-organized. See if the document flows, or is difficult to read. Decide if the verbiage makes sense, and keep your eye out for contradictions or inconsistencies. Notice if the language is unnecessarily complex. Look for clear, everyday language that people at every level of the company can understand easily.
Study the company’s mission and vision statements to determine if the code of ethics is congruent with them, or if the code of ethics doesn’t seem match the tone or direction that these other statements seem to set.
Read the title of the ethics document. It should be memorable, not simply "Our Brand Inc. Code of Ethics." Check to see if the code of ethics contains a letter from the corporate leadership, and an introduction. Determine if the letter and introduction provide direction about how the company should use the code of ethics, and a commitment that the business leadership intends to apply to the ethics rules.
Look for a clear guidance within the sections of the code of ethics regarding its necessity, to whom the code will apply, how the company will measure behavior the code governs. Look also for accountability and reporting protocols for infractions against of the code.
Determine if the code of ethics is directed toward its intended users–the employees of the firm--or if it is just another marketing tool. A good code of ethics will guide the employee at any level of the firm in making business decisions that are strategically and ethically correct for the company.
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