Each has a different goal in mind for the company.

A code of compliance focuses on regulation of behavior of company employees. For example, such a code could consist of guidelines for addressing conflicts of interest, harassment of employees, unlawful discrimination, use of company property only for company purposes, and so forth. A typical statement contained in such a code would be as follows: "You must avoid a situation that involves a conflict between your personal interest and the interest of the company."

An identity and value code includes a list of company values and emphasizes positive concepts. It is a code sharply different from a code of compliance. For example, it may include statements on integrity, respect for others, teamwork and service to those having an interest in the company. In essence, this code establishes an identity for the company. Such a code might include the following: "My company stands for fair and honest treatment of its customers."

A social outreach code establishes a company's role as a social citizen. In the past, this form of code has taken either of two paths. One is characterized as social accounting, resting upon the premise that a company must account for social activities in a way similar to financial accounting. It has its origins in Europe.

The other social outreach path focuses on a company's core competency in contributing to society. It has its origins in Europe and the United States. For example, a personal computer manufacturer decides at no charge to make available its computers and design a network for their use in elementary school classrooms in a given school district. Neither the school children, their parents, nor the school district are required to pay for the equipment. However, society presumably benefits by the children becoming knowledgeable of basic computer principles at an early age.

These basic concepts for an ethics code should be kept in mind in organizing your company's code. Because of the different motivation for each, a code based upon more than one of these concepts should provide for them separately.

For example, an initial section of your code might set forth the identity and value of the company. A typical statement for such a code would be as follows: "One of our company's most valuable assets is our reputation for integrity and fairness."

In another section, your code may specifically address an issue of compliance. An example of such a statement would be as follows: "No employee, officer or director may use corporate property for personal gain." That is, a company jet must not be used by an employee for his or her separate business as an officer, director or owner of another company.

A social outreach code concept has a very different motivation and might require a separate document setting forth its requirements. An example of a statement in such a code might be as follows: "The company shall seek out ways to enhance and contribute to a strong educational system in the state."

Whatever code concept you choose for your company, the task subsequent to that selection becomes organizing an outline of what you want to include in that code. The specific provisions may be subject to requirements of state or federal law.

For example, the federal Sarbanes-Oxley Act of 2002 sets minimum ethics code requirements for a company whose securities are traded on a national or regional exchange subject to the Securities Exchange Act of 1934. In addition, such a public company would be subject to ethics code requirements of that exchange, which may have changed as a result of the 2002 act.

Careful planning and organization of your ethics code prior to drafting it should minimize possible time-consuming and expensive revisions to bring it into compliance with law. Do not be dissuaded by this seemingly daunting task. A code of ethics makes good sense for your company, its employees and those with whom it deals in the marketplace.

Julius Brecht is managing shareholder and an attorney in private practice with the law firm of Wohlforth, Vassar, Johnson & Brecht in Anchorage. He may be reached via e-mail at jbrecht@wvjb.com. The content of this article was not prepared as, and must not be construed as, legal or investment advice to anyone.