Code of Conduct
Introduction
A company code of conduct is a document voluntarily drawn up by a company that sets out a series of principles that it unilaterally agrees to follow. On some occasions, codes of conduct reach supplier companies, subcontractors and third parties.
Codes of conduct for companies appeared in the 1970s, but it was during the globalization process of the 1990s that Multinational Companies (MNEs) began to generally create and disseminate numerous codes of conduct to public opinion to which they agreed to adjust their activities.
This is a novel phenomenon with respect to MNEs and their relationships with workers, society and the environment. They have generated extensive debates on the conditions of their validity and control, which in turn has given rise to the creation of "observatories of multinational companies").
Corporate codes of conduct are related to the International Framework Agreements (sometimes also called bilateral codes of conduct) that several MNEs have signed with global unions, as well as the multilateral codes of conduct that companies have signed with unions, NGOs, environmental organizations, consumer organizations, etc.
Contents
The content of company codes of conduct is extremely varied and depends largely on the culture of the company and the country to which it belongs. In general terms, it can be said that the codes of conduct refer to anti-corruption, labor, environmental and basic legal issues, such as the rejection of slavery, child labor, compliance with the environmental standards of each country, and in general respect for national laws.
In general, existing codes of conduct only apply to the headquarters, and sometimes, with restrictions, to subsidiaries. Only exceptionally do codes of conduct apply to suppliers and other subcontractors.
Additionally, the social responsibility of a company affects the company's code of conduct, as it reflects its principles. Which can be affected by employees in the management branch and their principles or ideals. Demonstrating that the social responsibility of a certain company defines or takes part of the company's code of conduct.[1].