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How to Create a Code of Conduct for a Small Business Team

Jun 20

3 min read

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You don’t need a big HR team to set clear expectations—just intent, structure, and consistency.

A business owner once said:

“We had a great team, but small issues—like late arrivals, WhatsApp gossip, or missed deadlines—started affecting morale. We had no written rules. So we couldn’t call it out clearly.”

Another shared:

“I always thought a Code of Conduct was for big companies. But after one toxic hire, I realized our culture needed a backbone.”

A Code of Conduct isn’t bureaucracy.

It’s a simple, proactive way to set behavioral and ethical standards—before misunderstandings or conflicts arise.

Let’s break down how to build one that’s relevant, readable, and respected—without sounding corporate or cold.


Step 1: Understand What a Code of Conduct Actually Is

It’s not a legal document or an employee manual.

It’s a short, clear guide that tells your team:

  • What behaviors are expected

  • What won’t be tolerated

  • How people are expected to treat each other, clients, and the business

It sets the tone for culture—and gives managers a reference point when something goes off-track.


Step 2: Decide What It Should Cover (Not Copy-Paste Corporate)

Keep it simple and tailored to your team size, industry, and values.

A small business Code of Conduct should include:

  1. Respect & Professionalism

    → How employees treat each other, vendors, clients

  2. Punctuality & Attendance

    → Clarity on working hours, time-off process, and communication norms

  3. Communication Norms

    → What channels to use, response expectations, tone and boundaries

  4. Work Ethic & Accountability

    → Ownership of tasks, deadlines, transparency when stuck

  5. Use of Company Assets

    → Phones, laptops, internet usage, data confidentiality

  6. Conflict & Grievance Handling

    → Where to raise issues, how feedback works, anti-harassment commitment

  7. Integrity & Honesty

    → No falsification of data, billing, time logs, or misrepresentation

  8. Consequences for Breach

    → Not legalese, just a clear line: repeated violations may lead to warnings or exit

💡 You can also include a short note on what you value as a culture—humility, reliability, collaboration, etc.


Step 3: Involve the Team in Drafting It

If this is your first time introducing a code, make it collaborative, not top-down.

  • Ask senior team members for feedback: “What do you think should be part of our conduct charter?”

  • Use examples from real incidents (without names) to co-create relevance

  • Share a first draft and invite suggestions before finalizing

📌 The more involved your team is, the more likely they’ll respect and uphold it.


Step 4: Keep the Tone Human, Not Legal

Your Code of Conduct should sound like you—not like a lawyer.

Instead of:

“All employees must refrain from engaging in unprofessional activities as defined by company policy.”

Say:

“We expect team members to speak respectfully, take ownership of their work, and use business time and tools responsibly.”

The tone builds trust—even more than the words.


Step 5: Make It Visible and Useful

Once finalized:

  • Share it during onboarding

  • Keep it accessible (print + digital copy)

  • Refer to it when handling issues—not as a weapon, but as a neutral standard

You can even summarize it into a 1-page “Culture Charter” and pin it in the office or team Slack.


Step 6: Review and Evolve Annually

Culture shifts. Teams grow.

So should your code.

Set a reminder to:

  • Review it annually with senior staff

  • Add clauses based on new learnings (e.g., remote work, data policies)

  • Remove anything outdated or unclear

Consistency = credibility.


TL;DR – Too Long; Didn’t Read

  • A Code of Conduct is a short guide that outlines team behavior and accountability.

  • Cover areas like respect, time management, communication, use of company assets, and grievance norms.

  • Write in plain language, not legal jargon.

  • Involve your team in the drafting process—it builds ownership.

  • Keep it visible, relevant, and updated each year.


You don’t need a 50-page policy handbook.

You need a clear, founder-aligned code that helps your team grow without friction or confusion.

Because strong culture isn’t built by chance.

It’s built by clarity—and the courage to put expectations in writing.

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