The 2025 Code of Conduct Report shows gaps remain in AI guidance and employee communication
NEW YORK–(BUSINESS WIRE)–LRN Corporation, a leader in ethics and compliance (E&C) solutions, has released its 2025 Code of Conduct Report, revealing how organizations are modernizing, but failing to optimize, their codes of conduct. The findings show that while companies are making notable progress in updating codes to be more usable and accessible, most are falling short in embedding these standards into day-to-day decision-making, especially as emerging risks like artificial intelligence (AI) grow in prominence.
“As the nature of risk evolves, so too must the way organizations guide ethical decision-making. Organizations can no longer treat their codes of conduct as static documents,” said Jim Walton, LRN Advisory Services Director and lead author of the report. “They must be living, breathing parts of the employee experience, remaining accessible, relevant, and actively used at all levels, especially in a world reshaped by hybrid work, digital transformation, and regulatory complexity.”
From incorporating AI to usage in hybrid work settings and increased multilingual accessibility, LRN’s findings reflect that more organizations are rethinking what effectiveness within a company code truly means.
Key findings from the 2025 report:
- AI is missing: While the inclusion of AI-related risk content tripled from 5% of codes in 2023 to 15% in 2025, 85% of codes still fail to address the ethical implications of AI, leaving a major gap in guidance around one of today’s most critical emerging risks.
- Middle management disconnect: Although 85% of executives report discussing the code of conduct with their teams, only about half of frontline employees say they hear about it from their direct managers, revealing a persistent breakdown in ethical communication at the middle-management level.
- Increased employee engagement: Hybrid work continues to have a positive influence on engagement, with 76% of hybrid employees reporting that they utilize their company’s code of conduct as a resource, suggesting that a flexible work environment supports greater access to and application of ethical guidance in daily decision-making.
- Digital delivery on the rise: Two-thirds of employees report access to their code of conduct in their native language, a key benchmark in global compliance expectations. Meanwhile, 32% of organizations now offer web-based codes, improving accessibility for hybrid and remote workforces.
The report also found that foundational risk topics remain robust in codes. Bribery and corruption held steady at over 96% inclusion, while conflicts of interest rose to 96%. Company assets and competition also ticked upward, demonstrating that while codes are evolving to include emerging topics like AI, they are maintaining focus on the longstanding issues that form the backbone of corporate integrity.
In an era of global disruption, rapid technological change, and evolving workplace expectations, the corporate code of conduct has evolved beyond a compliance document. A modern code reflects a company’s values, culture, and ethical compass. The 2025 LRN Code of Conduct Report offers a dual perspective of how organizations are adapting their codes of conduct by enhancing structure, clarity, delivery methods, and risk responsiveness, while considering the experiences of the people the codes are designed to guide.
Drawing on a comprehensive review of nearly 200 global codes, over 2,000 employees across 15 countries, this year’s report explores the intersection of how codes are written, how they’re used, and how they influence the daily decisions of the global workforce. The analysis applies LRN’s proprietary Code of Conduct Assessment methodology to evaluate eight key dimensions of code effectiveness, including tone from the top, usability, risk coverage, and knowledge reinforcement.
To download the full 2025 Code of Conduct Report, visit: https://lrn.com/resources/code-of-conduct-report-2025
About LRN Corporation’s Reports
The 2025 Code of Conduct Report is the latest installment in LRN’s decade-long research series of surveys and analyses that track data points from organizations across the world. This research complements other LRN ongoing studies, including the Ethics & Compliance Program Effectiveness Report, the Benchmark of Ethical Culture Report, and the Program Maturity Report. Combined, LRN industry research provides unparalleled insights into best practices, benchmarks, and innovative strategies shaping the future of compliance programs.
About LRN Corporation
LRN is the world’s largest dedicated ethics and compliance company, educating and helping more than 30 million people each year worldwide navigate complex legal and regulatory environments and foster ethical cultures. As one of the Inc. 5000 Fastest-Growing Companies, LRN’s growth and impact underscore our commitment to excellence and innovation in the advancement of ethical business practices. Our combination of practical analytics and software solutions, education, and strategic advisement helps companies translate their values into concrete practices and leadership behaviors that create sustainable, competitive advantage. LRN is the trusted long-term partner to more than 2700 organizations, including some of the most respected and successful businesses in the world.
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