A Works Councils Right Of Codetermination With Respect To An Ethics Code Of Conduct

Corporate adoption of Ethics Codes of Conduct has become increasingly common over the years. One question that has arisen in connection with these Codes of Conduct, however, is whether a works council has the right to be involved with the preparation and implementation of such a Code. This question becomes even more complicated when a foreign parent company wishes to implement a uniform, global Code of Conduct; subsidiaries in other countries do not want to be placed in the unenviable position of deviating from the parent company's instructions or guidelines because of local law requirements.

Purpose of a Code of Conduct

An Ethics Code of Conduct is a document that sets forth a company's policies, particularly with respect to how employees and management are to behave or proceed with regard to such matters as competition, the protection of company assets, conflicts of interest, and legal issues. The essence of an Ethics Code of Conduct is to ensure that the company