Various Professional Codes of Ethics

Codes of ethics may take many forms, but their general purpose is to ensure that businesses and their employees follow state and federal laws, conduct themselves in an exemplary manner, and ensure that the business being conducted is beneficial to all stakeholders. Three types of business codes of ethics are listed below..

There are laws that regulate issues such as hiring and safety standards for all businesses. Besides setting guidelines for conduct, compliance-based codes of ethics also determine punishments for violations.

Business conduct is governed by specific laws in some industries, including banking. To ensure compliance with laws and regulations, these industries develop compliance-based codes of ethics. It is common for employees to undergo formal training in order to learn the rules of conduct. Individual employees within the company may be penalized for noncompliance due to the possibility of creating legal issues for the entire company in the event of noncompliance.

Some companies appoint a compliance officer to ensure compliance with the code of ethics and its principles. It is the responsibility of this individual to stay informed about changes in regulation codes and to monitor employee behavior in order to promote conformity.

Unlike individual monitoring of behavior, this type of code of ethics is based on clearly defined rules and consequences. In spite of strict adherence to the law, some compliance-based codes of conduct do not promote an environment of moral responsibility within an organization.

Codes of ethics based on values address the core values of an organization. In addition to defining the standards of responsible conduct, it may also outline how they relate to the greater public good as well as the environment. It may be necessary for ethical codes based on values to require a greater degree of self-regulation than those based on compliance.

It is common for codes of conduct to include language that addresses values as well as compliance. For instance, the code of conduct of the American Association of Retired Persons (AARP) includes a commitment to respect human dignity, promote social justice, and protect the environment. 

In certain professions, such as those in finance or medicine, codes of ethics and conduct are regulated by specific laws. The following professions usually have a code of ethics and conduct: doctors, lawyers, accountants, financial advisors, engineers, architects, real estate agents, journalists, and social workers.

- Psychologists in the United States are governed by the American Psychological Association's (APA's) code of ethics.

- Lawyers in the United States are bound by the American Bar Association's Model Rules of Professional Conduct, which outlines the ethical responsibilities of legal practitioners.

- Physicians are required to adhere to the Hippocratic Oath, which outlines their responsibilities and duties.

- Stockbrokers and brokerage firms are regulated by the Financial Industry Regulatory Authority (FINRA), which has a comprehensive code of ethics for all members.