NOVEMBER/

DECEMBER 2017
Vol. 31 | No. 6
THE JOURNAL OF PRACTICAL BUSINESS ETHICS

A PUBLICATION FROM THE SOCIETY OF CORPORATE COMPLIANCE AND ETHICS

Busting out the

Mattis Memo
on Ethics
page 1

Whistleblower 101
page 5

corporatecompliance.org/ethikos
 Adding value: Tying your Code
of Conduct to your companys
core values

BY MEGHAN DANIELS AND KIRSTEN LISTON

T
oday, company codes of conduct (Codes) have evolved far
beyond where they began.
Once a fairly dry laundry list of compliance requirements,
the average Code now looks more like an annual report or mar-
keting document, complete with visual branding, taglines, and
sidebars or infographics. Its written in plain language and attempts
to give the reader practical advice on putting the Code guidance
into practice.
We attribute this evolution, in part, to an increase in regulatory
focus on true effectiveness in compliance programs and, in part,
to a general growth and maturity of the Compliance and Ethics
industry. As part of this evolution, there has been a major trend
towards Codes that are organized around or otherwise tied to the
companys corporate values.
In this article, well walk you through some of the benefits and
pitfalls of creating a values-based Code. Well give practical advice
and guidance making this work, and share other strategies you can
use to incorporate your companys values into your Code.

20 November/December 2017 ethikos This article appears with permission from the Society of Corporate Compliance & Ethics. Call +1 952 933 4977 or 888 277 4977 with reprint requests.
 What are the benefits? When this happens, dont panic. There are
Values-based Codes are a great way to engage often ways you can still work your values into
your audience. When a Code uses lan- a Code in productive and meaningful way. Its
guage that is recognizable and important at important to never try and stretch a value to
a company, it makes readers feel (right from meet a compliance and ethics need, because
the start) that they are reading a document you run the risk of losing credibility with
that matters. your reader.
In this sense, a values-based Code can
make the reader keep reading, but it can also
set the foundation, early on, that compliance is BENEFITS OF A VALUES-BASED CODE
important at the companyimportant enough Enables reader to recognize important company
to share space with the companys values. language and pay attention from the start
As a bonus, values-based Codes serve a
Gives reader the sense that compliance
dual purpose. On one hand, they can get a
matters to the company
reader to engage in the document, because it
seems personal to the company, but on the Provides reader with a clear way to think
about the Code
other hand, they can also help the company
drive home values that are important and Brings the Code to life for a reader and lets
always need reiterating. them see how ethics and compliance fit in with
their daily life at the company

What are the pitfalls? Helps communicate and reinforce the company
In an ideal world, you find yourself in a sit- values in one more medium
uation where your values are completely
aligned with compliance and ethics concepts.
(For example, integrity and accountability And now for the practical advice
are values that lend themselves well to Code There are lots of ways to incorporate values
topics.) When this is the case, a values-based into codes. The beauty of a well-designed
Code is often easy to develop and the end Code is that it will be engaging to a reader,
result is as good as it gets. and also look and feel unique and specific
On the flip side, when corporate values are to a company.
already etched in stone and include language Not every company can approach a
that does not necessarily align with compliance values-based Code in the same way. As men-
and ethics goals, you can find yourself trying to tioned above, when values are already in
fit a square peg into a round hole. (For exam- place and not an exact fit with compliance
ple, there are companies whose values include and ethics concepts, you sometimes have to
innovation, passion, or a will to win.) be creative.

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 When you have values to work with
Use your corporate values to provide the frame-
work of the Code. When you have a good or
decent set of values to work with, its great to
try and organize the Code around those values.
If your corporate values are relatable to the con-
cept of making ethical business decisions, they
will often work as a good foundation and orga-
nizational structure for the substance of a Code.
So, for example, you might group topics
like Honest and accurate reporting under
Accountability and Anti-bribery and Insider
trading under Integrity.
TACTICAL ADVICE FOR USING VALUES
TOORGANIZE THE CODE
When creating a way to organize the substance of
your code, heres a helpful approach.
Start with two key documents: a table which
includes a column for each value, and a list of
all of the substantive topics you want to include
in the Code.
Once you have these two documents, see how
well you can spread the risk topics out over the
value columns. What fits with Integrity? What fits
with Respect?
Youll want to have a fairly even amount of topics
per section. If you can do with this with relative
ease and find a spot for every topic, youre off to
agreat start.
Use the values in other ways
If you are struggling to fit different substantive
topics within your defined values, there are
other strategies.
22 November/December 2017 ethikos This article appears with permission from the Society of Corporate Compliance & Ethics. Call +1 952 933 4977 or 888 277 4977 with reprint requests.
Incorporate your values in the text of
the document
If values wont work as an organizational body,
you can absolutely still weave them throughout
the document in a thoughtful way.
Try introducing the values as important
to the company in the introduction and then
highlighting individual values to make points
throughout the Code. For example, if Driven
is a corporate value, it might not make sense
as an organizing principle for Code topics, but
it can certainly be used to enhance the Code
language. For example: We are driven to do
the right thing. We are driven to earn busi-
ness fairly.
Use values as the basis for learning aids or
call-out boxes
Sometimes the values might resonate as
words that fit into the compliance and ethics
world, but the values when put together are
not comprehensive enough to form the whole
organizational foundation of the Code. This
can happen when two of the values have
a similar application to substantive topics
(say, Integrity and Ethics) and its therefore
hard to decide which topic to align with
which value.
In these cases, an alternative way to weave
the values throughout the Code might be to
use them as titles to sidebars, learning aids, or
other call-outs. So for example, if using the
value Integrity, you could include (throughout
the substantive portion of the Code) a learn-
ing aid entitled Integrity at Our Company,
which provides an example of an employee
doing the right thing, as it relates to the topic
being addressed.
 Emphasize one value
There are often times when there is one value EXCELLENT VALUES FOR COMPLIANCE
that really stands out as a compliance and ethics CONCEPTS
value. In these cases, you might consider using Here are some values that lend themselves well to
compliance messaging:
that one value as an organizing theme for the
whole document. For example, lets say your Respect, Good Citizenship, or Teamwork
values include Trust, Motivated, and Innovative. Stewardship
In this case, building the entire Code
Integrity or Honesty
around the theme of Trust can be a strong
approach. Here, you would introduce all of Accountability, Personal Accountability, or
Responsibility
the values in the introduction of the Code, but
then pick one to emphasize, explaining why it Performance or Excellence (you can tie this to
serves as the foundation for the Code. (And topics like Product Quality)
you could always use Motivated or Innovative Leadership (everyone can be a leader when it
as the basis for learning aids or other taglines, comes to integrity) or Ownership
as discussed above.) Full Disclosure and Transparency

When you have a blank slate

There may be times when you have the oppor- content has to do a bigger jobnot just inform
tunity to contribute to the development of employees, but persuade them. Often, the
companys corporate values. Or you might decide Compliance team has a goal of driving real
to create values for your compliance program to and substantive cultural change.
drive not just the Code, but the program overall. When persuasion is your goal, vocabulary
This can be an excellent position to be in. matters. You may see better results if you can
In this case, we recommend looking for ground the Code in language thats compel-
words that capture key compliance and ethics ling and relevant to employees.
concepts, but which will also resonate with Reflecting your companys values in the
and inspire your audience. Code can help you connect the Code to larger
Try and keep the language simple and business initiatives or aspects of company
straightforward; use words that an everyday culture. This, in turn, can carry a powerful
person would use in conversation. This will message: the Code is not separate from doing
help keep the language meaningful and more your job well, its part of it. n
likely to connect with your audience.
Meghan Daniels (meghan@rethinkcomplianceco.com)
Conclusion is Practice Leader, Code Rewrite Services at Rethink
Traditionally, most compliance content Compliance in Barrington, RI. Kirsten Liston (kirsten@
including a Codewas designed to inform rethinkcomplianceco.com) is Principal at Rethink
and educate. Today, however, compliance Compliance in Barrington, RI.

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