What is the importance of code of conduct?

Code of Conduct is the standard of expected ethical behaivor for the company's employees. It is about holding yourself to the highest standards of ethical business behavior. Typically Codes talk about expectations to obey the law, conflicts of interest, insider trading, preserving confidential information, bribery, corporate opportunities, competition and fair dealing among other things. Executives of a company have the duty to create an environment conducive to ethical behaivor. This is sometimes called "tone at the top". A Code of Conduct is the cornerstone of setting the proper tone at the top for the business's culture.