Code of Conduct Template for South Africa

A Code of Conduct lays out the core values, ethical standards, and expected behaviors for everyone in an organization. It serves as your practical guide for making good decisions at work, from handling sensitive information to avoiding conflicts of interest - all while staying within South African law.

Beyond just following rules, it helps create a positive workplace culture and protects both employees and organizations. Companies listed on the JSE must have one to comply with King IV governance principles, but even smaller businesses use these codes to build trust with stakeholders and demonstrate their commitment to ethical practices.

Organizations need a Code of Conduct when expanding their team, entering new markets, or facing increased regulatory scrutiny. It's especially crucial when listing on the JSE, as King IV governance requirements make it mandatory. The code becomes your shield during sensitive situations like misconduct investigations or when dealing with conflicts of interest.

Many South African companies implement their codes during major organizational changes, mergers, or when updating their compliance programs. It's particularly valuable when building relationships with international partners, as it demonstrates your commitment to ethical business practices and alignment with global anti-corruption standards.

• Audit Code Of Conduct: Sets ethical guidelines for internal auditors, focusing on independence and professional standards
• Client Code Of Conduct: Outlines expected behavior and responsibilities when interacting with company services or facilities
• Code Of Conduct Contract: A legally binding version that employees sign, making ethical guidelines enforceable
• Code Of Conduct For Contractors: Tailored for external partners, ensuring they meet company standards while working on projects
• Audit Code Of Practice: Detailed procedures for audit activities, combining ethical principles with practical guidelines

• Corporate Boards: Approve and oversee the Code of Conduct, ensuring it aligns with King IV governance requirements and company values
• Legal Teams: Draft and update the code, incorporating relevant laws and JSE listing requirements
• HR Departments: Implement the code, conduct training, and handle violations through disciplinary procedures
• Employees: Must understand, sign, and follow the code's guidelines in their daily work activities
• Contractors & Suppliers: Often required to comply with the organization's code when providing services
• Compliance Officers: Monitor adherence, investigate breaches, and report to management on code effectiveness

• Industry Research: Review similar codes in your sector and King IV governance requirements for key principles
• Stakeholder Input: Gather feedback from department heads about specific ethical challenges they face
• Legal Framework: List relevant laws and regulations, including JSE requirements if applicable
• Company Values: Document your organization's core principles and cultural expectations
• Risk Assessment: Identify key compliance risks and ethical challenges specific to your operations
• Implementation Plan: Outline training programs, reporting mechanisms, and enforcement procedures
• Plain Language Check: Ensure the code is clear and easily understood by all employees

• Purpose Statement: Clear outline of the code's objectives and alignment with King IV principles
• Scope Definition: Who the code applies to and under what circumstances
• Core Values: Organization's ethical principles and commitment to good governance
• Compliance Framework: References to relevant South African laws and industry regulations
• Behavioral Standards: Specific conduct expectations and prohibited activities
• Reporting Mechanisms: Protected disclosure procedures aligned with whistleblowing laws
• Disciplinary Procedures: Clear consequences for violations and appeal processes
• Acknowledgment Section: Space for employee signature and date of acceptance

A Code of Conduct differs significantly from an Accountability Agreement. While both documents address behavior and responsibilities, they serve distinct purposes in South African organizations.

• Scope and Coverage: A Code of Conduct provides broad ethical guidelines for all employees and stakeholders, while an Accountability Agreement focuses on specific performance metrics and responsibilities for individual roles or departments
• Legal Enforceability: Codes of Conduct establish general behavioral standards but may not be directly enforceable, whereas Accountability Agreements create specific, measurable obligations that can be legally binding
• Duration and Flexibility: Codes remain relatively stable and apply continuously, while Accountability Agreements often have defined terms and may be revised based on changing objectives
• Implementation: Codes require company-wide training and awareness, while Accountability Agreements typically involve individual sign-off and regular performance reviews