A former employee brought an action against his employer, alleging that the empl

Question

A former employee brought an action against his employer, alleging that the employer, in demoting him out of management, had breached enforceable provisions of the employer’s code of conduct. The code was a one-page document that every employee must sign every year, certifying understanding and compliance. It began with a general statement of high ethical aspirations (i.e., “The highest standards of ethical business conduct are required of Boeing employees in the performance of their company responsibilities. Employees will not engage in conduct or activity that may raise questions as to the company’s honesty, impartiality, reputation or otherwise cause embarrassment to the company.). The code then enumerated eight specific employee obligations and encouraged employees to report violations. It concluded by stating, “Every employee has the responsibility to ask questions, seek guidance and report suspected violations of this Code of Conduct. Retaliation against employees who come forward to raise genuine concerns will not be tolerated.” Does this in any way create an implied contract between the former employee and his employer? Or is the code merely a statement of corporate aspirations?

Explanation / Answer

This code is merely a statement of coporate aspirations and not contract. Agreeing to it doesn't bring the employee under the purview of law, it's just a set of rules one should abide by.

It also has a paradox where on one hand it mentions that an employee shouldn't question the company's honesty, impartiality etc. and on the other had mentions that the employee has the responsibility to ask questions or report suspected violations.

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