The corporate code of ethics: what it is for

“Code of ethics” sounds like a document for a large multinational, good for the brochure and ignored in practice. That is the most common mistake. Done well, a code of ethics is an operational tool that guides day-to-day decisions, protects the company and makes clear to everyone which behaviours are expected. Let’s look at what it really serves and how to build one that does not end up in a drawer.

What a code of ethics is

A code of ethics is the document that defines the company’s values and the rules of conduct that follow from them. It is neither a contract nor a disciplinary code: it is the practical translation of “how we work here” into applicable principles. It typically covers topics such as integrity, conflicts of interest, data handling, relations with clients and suppliers, and respect for people.

In Switzerland there is no general obligation for SMEs to adopt a code of ethics. But its usefulness is independent of any obligation: it makes explicit the standards that would otherwise remain implicit and, as such, be interpreted differently by everyone.

What it concretely serves

A code of ethics is not an exercise in style. It has measurable functions.

• It guides difficult decisions: when an employee faces a dilemma (accepting a gift from a client, handling confidential information), the code offers a clear reference instead of leaving it to individual judgement.
• It reduces legal and reputational risk: misconduct prevented is damage avoided. In the event of a dispute, it demonstrates that the company had set standards and monitored compliance.
• It strengthens external trust: clients, partners and investors increasingly assess governance and integrity, not just the numbers.
• It underpins the other tools: it gives a basis to the whistleblowing system, anti-corruption policies and internal procedures. Without the code, these tools lack a common reference.

What to write: the essential content

A good code is specific, not a collection of good intentions. The topics that can rarely be missing:

Integrity and anti-corruption

Clear rules on gifts, hospitality, payments to intermediaries, relations with public authorities. Concrete thresholds are better than vague formulas.

Conflicts of interest

How to recognise and declare them: outside activities, financial interests, personal relationships that can interfere with company decisions.

Confidentiality and data protection

Handling of client and colleague information, consistent with the Swiss data protection law. What can be shared, with whom, and what stays confidential.

Respect for people

Prohibition of discrimination and harassment, the tone of internal relations, correct use of company tools.

Relations with the market

Fair competition, correctness in commercial communication, respect for commitments to clients and suppliers.

How to keep it alive, not decorative

The difference between a useful code and a useless one lies not in the text, but in the implementation.

• Concrete language: real examples and situations, not abstract maxims. “If a supplier offers you a weekend away, refuse and inform your manager” is worth more than ten lines on transparency.
• Active dissemination: the code must be presented, explained and signed, not emailed and forgotten.
• Consistency at the top: if management violates the principles, the document loses all credibility. Example counts more than rules.
• Periodic updating: the company changes, the risks change. A code that is never revised ages quickly.
• Link to consequences: it must be clear what happens in the event of a breach. A code without consequences is advice, not a rule.

Proportionate to size

An SME does not need the code of a listed bank. On the contrary, a document that is too long and bureaucratic achieves the opposite effect: no one reads it. A few clear pages, calibrated to the real risks of the business, are better than a legal tome. The right measure is the one employees can actually keep in mind.

Our approach

At SIH ONE we help companies write codes of ethics that are essential and applicable, integrated with the other governance policies: whistleblowing, data protection, prevention of conflicts of interest. We start from the concrete risks of your business, not from a standard template, because a code works only if it reflects how you really work.

Do you want to give your company clear rules that people apply? Let’s build them together.