Codes of conduct are statements that commit organizations, industries, and professions to particular moral values and beliefs and define appropriate behavior for employees and professionals. This chapter explores how codes of conduct can affect moral reasoning and behavior in the workplace. On the one hand, they clarify the scope of action available to decision-makers, but on the other hand, they can incentivize people to identify and exploit loopholes in the codes. When organizations structure ethics around a set of codes defining appropriate behavior, it can create an unforeseen and unwanted form of creativity. Loophole ethics is the activity of remaining loyal to the letter of the code of conduct and assuming that any action that the code is silent about is morally acceptable, or at least not required. An alternative to operating with codes of conduct of increasing complexity is to make the principles simpler and more general, thereby leaving more room for the use of personal and common judgment.