Function

• Ethical codes provide a structure and framework for how to behave ethically. The concept of being ethical is subjective; however, people are mandated to follow the ethical construct that their environments dictate.
  
  

The Basis

• Codes of ethics are founded on principles, morals and values. Combined, these variables constitute our ethical constructs and can impact our behaviors, decisions and the way we conduct our lives. Businesses create codes of ethics based on the same founding variables.
  
  

Ethical Standards

• According to a 2010 update by the American Psychological Association, codes of ethics have standards that outline what types of ethical behaviors are expected of others. Ethical standards can be set by anybody in charge. In business, standards may be set by a company's CEO. At home, ethical standards may be set by a person's parents. Standards dictate what behaviors will be tolerated, and which ones will not.
  
  

Societal Norms

• Societal norms may shape the basis of codes of ethics. If something is not considered to be socially acceptable, then it may show up on a code of ethics as an undesired behavior. According to the American Psychological Association, understanding society and the human condition can help the formulation of codes of ethics.
  
  

Controversy

• Ethics have been known to instigate controversy, since there is no black and white definition of right versus wrong. Our value systems, cultures, religious backgrounds and sexual identities can all impact what we believe is ethical.