Code of Conduct Template for Saudi Arabia

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What is a Code of Conduct?

A Code of Conduct outlines the core values, ethical principles, and expected behaviors within an organization. In Saudi Arabia, these codes align with Shariah principles and local regulations, helping companies meet their compliance obligations under the Kingdom's Corporate Governance Framework.

Beyond rules and policies, an effective Code of Conduct guides daily decision-making, protects company reputation, and builds trust with stakeholders. It covers key areas like professional integrity, conflicts of interest, confidentiality, and workplace conduct - creating clear standards that reflect both international best practices and local cultural values.

Frequently Asked Questions

When should you use a Code of Conduct?

Organizations need a Code of Conduct when expanding operations, onboarding new employees, or facing increased regulatory scrutiny in Saudi Arabia. It becomes essential during periods of rapid growth, organizational changes, or when entering regulated sectors that fall under Capital Market Authority oversight.

The code proves particularly valuable when establishing clear boundaries for employee behavior, addressing ethical challenges, or demonstrating compliance with Saudi labor laws and anti-corruption regulations. Companies also rely on it during internal investigations, conflict resolution, and when building relationships with international partners who expect documented ethical standards.

What are the different types of Code of Conduct?

Who should typically use a Code of Conduct?

  • Board Members: Approve and oversee Code of Conduct implementation, ensuring alignment with corporate governance standards and Shariah principles
  • Legal Teams: Draft and update the code to meet CMA regulations and Saudi labor laws
  • HR Departments: Implement training, collect acknowledgments, and handle violations
  • Department Managers: Enforce daily compliance and report breaches to leadership
  • Employees: Follow guidelines and report violations through proper channels
  • External Stakeholders: Including vendors, contractors, and business partners who must adhere to company ethical standards

How do you write a Code of Conduct?

  • Company Profile: Gather your organization's mission, values, and industry-specific regulatory requirements
  • Legal Framework: Review Saudi labor laws, CMA regulations, and Shariah compliance standards
  • Risk Assessment: Identify key ethical challenges and compliance risks in your sector
  • Stakeholder Input: Collect feedback from department heads on practical concerns and common issues
  • Cultural Alignment: Ensure content respects local customs while meeting international standards
  • Implementation Plan: Develop training materials and reporting mechanisms
  • Document Generation: Use our platform to create a legally-sound Code of Conduct that incorporates all essential elements

What should be included in a Code of Conduct?

  • Purpose Statement: Clear objectives aligned with Shariah principles and corporate values
  • Scope Definition: Who must comply and under what circumstances
  • Ethical Standards: Core values and behavioral expectations that align with Saudi cultural norms
  • Compliance Obligations: References to relevant Saudi laws, CMA regulations, and industry standards
  • Reporting Mechanisms: Clear procedures for raising concerns and whistleblower protection
  • Disciplinary Actions: Consequences for violations, aligned with Saudi labor laws
  • Acknowledgment Section: Employee signature and date fields for formal acceptance
  • Review Process: Procedures for regular updates and amendments

What's the difference between a Code of Conduct and an Accountability Agreement?

A Code of Conduct differs significantly from an Accountability Agreement in several key aspects, though both documents support organizational governance in Saudi Arabia. While a Code of Conduct provides broad ethical guidelines and behavioral standards, an Accountability Agreement focuses on specific performance metrics and responsibilities.

  • Scope and Purpose: Codes of Conduct establish company-wide ethical standards and compliance frameworks, while Accountability Agreements target individual or departmental performance objectives
  • Legal Enforcement: Codes serve as general policy documents with disciplinary consequences, whereas Accountability Agreements create direct contractual obligations
  • Content Focus: Codes emphasize values, cultural alignment, and ethical behavior; Accountability Agreements detail specific deliverables and measurable outcomes
  • Duration: Codes remain relatively stable with periodic updates, while Accountability Agreements often have fixed terms and regular review cycles

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

Swetha Meenal profile photo

A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Saudi Arabia

Publisher

GenieAI

Category

other

Cost

Free to use

Last updated

About the Code of Conduct

  • Company Profile: Gather your organization's mission, values, and industry-specific regulatory requirements
  • Legal Framework: Review Saudi labor laws, CMA regulations, and Shariah compliance standards
  • Risk Assessment: Identify key ethical challenges and compliance risks in your sector
  • Stakeholder Input: Collect feedback from department heads on practical concerns and common issues
  • Cultural Alignment: Ensure content respects local customs while meeting international standards
  • Implementation Plan: Develop training materials and reporting mechanisms
  • Document Generation: Use our platform to create a legally-sound Code of Conduct that incorporates all essential elements

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