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Whether you name it the code of ethics, code of conduct, or code of ethics and conduct, it guides employees on how to behave, helps decision-making, fosters a positive workplace culture, and protects the company’s reputation. However, there are several mistakes companies make.
It’s not about the size
I’ve seen it several times: companies have a thin code of ethics that’s so general it cannot be consulted in cases of bad behavior because it contains nothing of substance. On the other hand, there are codes so long that you need several days to read them. There are others that have been designed to cover everything, but ethics cases must be evaluated according to the circumstances. Or the ones where all applicable laws are covered.
In short, none can be considered the best. In my experience, the most effective codes are direct and to the point, written in simple language so everyone in the company can understand them. It’s not about the size; it’s about the content.
It’s not another point to mark in the compliance checklist
Most companies with a code of ethics are listed on the stock exchange. In Latin America, most large and medium-sized companies have a code of ethics, which is standard practice for compliance. Companies have to comply with different regulations, another point checked off the list.
However, this doesn’t mean that employees have read it or are aware of the content. They usually get to know it if there’s training or when they need help in a case that involves ethics. If I randomly ask your employees what the company’s values are, would they know the answer?
Training is key to solving this. And if you want it to be effective, it should include different scenarios in which employees see themselves in the situation. Get them thinking: What would they do? How would they escalate the situation?
It isn’t one-size-fits-all
Many companies that have presence in Latin America do this: they translate the content of the code of ethics and implement it in their other locations. And when there’s training, many topics don’t apply; it’s boring and a waste of time. Invest time in adjusting the code’s content to the current environment. This is very important because it’s the ethics and conduct that you want your employees to follow. Add local examples and customize it to the local language. Make it easy for your employees to understand it.
Lastly, make sure your executives, directors, and managers adhere to the code of ethics and conduct. It’s useless to have a complete and understandable document if they don’t comply with it or if there is impunity when cases arise.
Stay tuned for the next Compliance in LATAM!
CEP Magazine | March 2026
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