Quick Answer:
A code of conduct is a document that sets out the standards of behaviour expected of everyone in an organisation, and how those standards are upheld. It covers how people treat each other, conflicts of interest, use of company resources, confidentiality, and what happens when the code is breached. In Australia no single law requires a private business to have one, but a clear, acknowledged code underpins your work health and safety, anti-discrimination and disciplinary obligations, and makes fair action possible when someone crosses the line.
In this article
- What Is a Code of Conduct?
- Is a Code of Conduct Legally Required in Australia?
- What a Code of Conduct Should Include
- Why a Code of Conduct Matters More Than It Looks
- Code of Conduct vs Your Other Policies
- How to Make a Code of Conduct Actually Work
- Common Code of Conduct Mistakes
- Where Sentrient Fits
- Frequently Asked Questions
A code of conduct is one of those documents every organisation is told to have, and few use well.
Done properly it is the reference point that keeps behaviour consistent and makes fair action possible when someone crosses a line. Done as a formality, it is a file nobody has read.
This guide covers what one is, whether you are required to have one, what it should include, and how to make it actually change behaviour.
Sentrient is an Australian-built GRC platform for compliance, risk and HR. See our workplace compliance system and compliance courses, built for Australian and New Zealand workplaces.
What Is a Code of Conduct?
A code of conduct is a document that sets out the standards of behaviour expected of everyone connected to an organisation, staff, contractors, volunteers and often suppliers, and how the organisation will uphold them.
It translates values into concrete expectations: how people treat each other, how they handle conflicts of interest, how they use company resources and information, and what integrity looks like day to day.
It is the behavioural spine of a business. Where individual policies deal with specific issues, it is the single statement of how people are expected to act, which is why it sits at the heart of sound governance, risk and compliance.
Is a Code of Conduct Legally Required in Australia?
For most private businesses there is no single law that says you must have a code of conduct.
Some sectors and the public service have specific requirements, but for a typical company it is not itself a statutory obligation.
That is easy to misread as optional. It is not. A code of conduct underpins obligations you do have.
It supports your work health and safety duty to manage psychosocial hazards such as bullying and harassment, it helps meet the positive duty to prevent workplace sexual harassment, and it gives you the documented standard you need to act fairly when behaviour falls short.
Without it, managing conduct becomes far harder to do defensibly.
The need is real, not theoretical. In the Australian Human Rights Commission’s Time for Respect survey, one in three Australian workers said they had been sexually harassed at work in the past five years, and only 18% reported it.
A code that sets a clear standard, and a safe way to raise concerns, is part of how a business actually meets that duty rather than just naming it.
What a Code of Conduct Should Include
A good code is specific enough to guide behaviour and short enough to be read. At a minimum it should cover:
| Section | What it covers |
|---|---|
| Purpose and scope | Why the code exists and who it applies to, including contractors and volunteers |
| Expected behaviour | How people treat colleagues, customers and the public, in plain terms |
| Respect and safety | Zero tolerance for bullying, harassment and discrimination |
| Conflicts of interest | How to identify, disclose and manage actual, potential and perceived conflicts |
| Use of resources and information | Confidentiality, data, company property and acceptable use |
| Integrity | Fraud, bribery, gifts and honest dealing |
| Reporting and breaches | How to raise concerns, and what happens when the code is breached |
| Acknowledgement | How staff confirm they have read and accepted the code |
Why a Code of Conduct Matters More Than It Looks
The real value of a code of conduct shows up at the hard moments. When someone behaves badly, the first question is whether they knew the expected standard and accepted it.
A code that a named person acknowledged, on a date, is what lets you act consistently and fairly. Without it, action looks arbitrary and is far easier to challenge.
It also sets the tone before problems arise. A clear code signals what the organisation actually values, which shapes the everyday behaviour that a healthy workplace culture depends on.
Culture is what people do when no one is watching, and the code is where you write down what that should look like.
Code of Conduct vs Your Other Policies
People often confuse the code of conduct with the rest of the policy library. The distinction is simple. The code of conduct is the overarching statement of expected behaviour.
Individual policies, such as a conflict of interest policy, a privacy policy or a bullying and harassment policy, go deeper on specific topics.
The code points to them and sets the principle, and the policies carry the detail. Managed together in your policy management approach, they reinforce each other rather than overlap.
How to Make a Code of Conduct Actually Work
- Write it in plain English, short enough that a new starter reads it on day one
- Have everyone acknowledge it, and record that acknowledgement so you can show it later
- Train on it, so people understand what the standards mean in practice, not just that they exist
- Model it from the top, because a code the leadership ignores teaches everyone to ignore it
- Review it regularly, and update it as the law and the business change
Common Code of Conduct Mistakes
- A code nobody acknowledges, so there is no evidence anyone accepted it.
- Vague, values-only language that gives no guidance on actual behaviour.
- Writing it once and never revisiting it as laws and risks change.
- Leaders who visibly ignore the code, which quietly cancels it for everyone.
- No link between the code and the specific policies and training that back it up.
Where Sentrient Fits
Sentrient makes a code of conduct real and provable. It holds your code of conduct policy with individual acknowledgements so you can show each person accepted it, assigns and tracks the training that brings it to life, and keeps the records retrievable when you need to act on a breach or answer a regulator, client or insurer.
Being straight about scope: writing a code is the easy part, and templates make that quick. Making it acknowledged, trained and enforceable across your team is the part that protects you, and that is what Sentrient is built for.
See your code of conduct acknowledged, trained and tracked in one place.
A Standard You Can Stand Behind
A code of conduct is not a poster or a formality. It is the standard you point to when behaviour is good and the one you rely on when it is not. Keep it clear, get it acknowledged, train on it, live it from the top, and keep it current. Do that, and you have a document that quietly does its job every day, and holds up on the day you need it most.
Disclaimer: General information for Australian businesses, not legal advice. Conduct, safety and discrimination obligations depend on your industry and circumstances. Confirm your specific requirements with a qualified adviser before relying on this. Correct as at August 2026.
Frequently Asked Questions
1. What is a code of conduct?
A code of conduct is a document that sets out the standards of behaviour expected of everyone in an organisation, and how those standards are upheld. It covers how people treat each other, conflicts of interest, use of resources and information, integrity, and what happens when the code is breached.
2. Is a code of conduct legally required in Australia?
For most private businesses there is no single law requiring one, though some sectors and the public service have specific requirements. But a code underpins obligations you do have, including managing psychosocial hazards, meeting the positive duty to prevent sexual harassment, and acting fairly on misconduct.
3. What should a code of conduct include?
Purpose and scope, expected behaviour, respect and safety with zero tolerance for bullying and harassment, conflicts of interest, use of resources and information, integrity around fraud and gifts, how to report concerns and handle breaches, and how staff acknowledge the code.
4. What is the difference between a code of conduct and a policy?
The code is the overarching statement of expected behaviour. Individual policies, such as a conflict of interest or privacy policy, go deeper on specific topics. The code sets the principle and points to the policies, which carry the detail.
5. Why is a code of conduct important?
It sets a clear standard before problems arise and gives you the documented, acknowledged basis to act fairly when behaviour falls short. Without it, disciplinary action looks arbitrary and is easier to challenge, and it is harder to show you managed conduct risks.
6. How do you make a code of conduct effective?
Write it in plain English, have everyone acknowledge it and record that they did, train on what the standards mean in practice, model it from leadership, and review it regularly as laws and the business change.
7. How does Sentrient help with a code of conduct?
Sentrient holds your code of conduct with individual acknowledgements, assigns and tracks the training that supports it, and keeps audit-ready records. It turns a written code into one that is accepted, understood and provable across your team.
Sources
- Australian Human Rights Commission, The positive duty
- Australian Human Rights Commission, Time for Respect (2022)
- Safe Work Australia, Psychosocial hazards
- Fair Work Ombudsman, Managing performance and warnings
