3 Reasons Why Your Brand Needs a Code of Ethics

A code of ethics is a statement your brand makes that establishes your morals and commitments. Whether your brand consists of you as a freelance writer or a company with over one hundred employees, it is important to have theses standards to hold both yourself and your employees to. If you need more convincing, here are my three reasons for why you should establish a code of ethics:

3. To clarify your values.

More and more, we are seeing consumers expecting companies and individuals to take a stance on the major issues shaping our world. Does your company use eco-friendly products? What are your opinions on the upcoming election? Do you support any nonprofits? These are the questions consumers want the answer to, and your code of ethics can address these questions. For example, you could say

As a company, our goal is to give back to the planet. Because of this, we donate 5% of each purchase towards the Sierra Club, which helps support eco-friendly initiatives.

or

One of my personal values is to use my platform to support those less privileged than myself, especially within the LGQBTQ+ community. I have no tolerance for homophobia, transphobia, or any other prejudices against this community. Hate comments in any form will result in you being blocked from my platform.

2. To give yourself and your employees a guideline regarding decision making.

You never know when a situation will occur that leaves your employees having to make quick judgement calls. Let's say you own a restaurant. One of your waitresses is serving a family and takes their order. When the food arrives, however, the family is displeased to see that this is not what they ordered. The waitress, on the other hand, is convinced that this is what the family said they wanted. What should your waitress do?

Perhaps your code ethics says to always please the customer, so the waitress immediately brings the food back and gives them a discount on their total. Or perhaps your code says to ask for help when needed, so the waitress is confident in going to her manager for assistance. Unfortunately, training for the job cannot cover every possible situation. However, by having employees who have been taught and understand the code of ethics, you will be able to trust that your employees have the foundation to make the right judgement call.

1. To help in marketing decisions.

Marketing around your code of ethics comes with two opportunities: first, to determine who you are marketing to. Your target market should align with and agree with your code of ethics. Second, to bring in new customers by marketing your code of ethics.

As stated in reason #3, consumers these days are looking for companies that align with their own morals and ethics. By making your code of ethics known, it will be easier for these consumers to find your company and identify with the brand.

What is your brand's code of ethics? If you don't have one, what do you think you would want on it?