Corporate codes of conduct are getting sleeker, more accessible, and easier to read—but when it comes to guiding real-world decisions in a fast-changing risk environment, most companies are still falling short. That’s the takeaway from the 2025 Code of Conduct Report from LRN Corporation, a longtime player in the ethics and compliance (E&C) space.
The report, based on nearly 200 global codes and insights from more than 2,000 employees across 15 countries, argues that organizations are modernizing their codes—making them web-based, multilingual, and user-friendly—but failing to embed them into the daily rhythm of work.
As Jim Walton, LRN Advisory Services Director and lead author of the report, puts it: “Organizations can no longer treat their codes of conduct as static documents. They must be living, breathing parts of the employee experience, especially in a world reshaped by hybrid work, digital transformation, and regulatory complexity.”
AI: The Glaring Gap
The hottest issue in business—artificial intelligence—barely registers in most corporate codes. While inclusion of AI-related risk content tripled from 5% in 2023 to 15% in 2025, that still leaves 85% of codes silent on the ethical use of AI. For a technology that’s redefining productivity, decision-making, and even compliance itself, the absence is striking.
With regulators circling and employees increasingly using AI tools on the job, that blind spot could leave companies exposed to ethical and legal headaches.
A Middle-Management Breakdown
LRN also found a disconnect in how codes of conduct are communicated inside organizations. Eighty-five percent of executives say they discuss the code with their teams, but only about half of frontline employees recall hearing about it from their direct managers.
That gap matters. Middle managers are often the bridge between lofty corporate values and day-to-day workplace behavior—and when they don’t carry the message, codes risk becoming wallpaper rather than a working guide.
Hybrid Work, Higher Engagement
Interestingly, hybrid work environments may actually be helping codes land. Seventy-six percent of hybrid employees said they actively use their company’s code as a resource, compared to lower engagement among fully on-site staff. Flexible work setups may provide employees the time, space, and digital access needed to pull codes into their decision-making.
On the accessibility front, companies are making strides:
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Two-thirds of employees now have access to their code in their native language.
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32% of organizations offer web-based codes, improving reach for distributed teams.
The Old Guard Still Stands
Despite emerging risks like AI, the backbone of corporate codes remains unchanged. Bribery and corruption policies appear in 96% of codes, conflicts of interest rose to the same level, and guidance on protecting company assets and maintaining fair competition also ticked up. Companies may be experimenting with new content, but they’re not letting go of the basics.
Why It Matters
In today’s landscape of global disruption and regulatory scrutiny, a code of conduct isn’t just a legal shield—it’s a company’s ethical compass. The LRN report suggests progress on presentation and accessibility, but also warns that without stronger integration into workflows—and sharper focus on emerging issues like AI—many organizations risk treating their codes as box-checking exercises rather than genuine cultural tools.
For ethics and compliance leaders, the message is clear: an effective code doesn’t just sit on a website or in an employee handbook. It has to shape decisions, conversations, and culture—every single day.
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Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.
Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Public relations, investor relations, public policy and marketing professionals rely on Business Wire for secure and accurate distribution of market-moving news and multimedia. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented NX network. Business Wire’s global newsrooms are available to meet the needs of communications professionals and news media worldwide.
