This approach had several flaws:-

• Internal code of conducts is expensive proposition.
• Many a times, they are inefficient, since laws and customs vary widely.
• Codes were perceived as a proprietary form of managerial jurisprudence, applicable only to a section of employees. When transgression takes places, corrective actions are largely not transparent.
• Supply chains, catering to different customers, having to undergo multiple audits to different set of requirements. Sometimes individual auditors interpret these requirements differently, without being sensitive to the cultural practices. A point in case is the insistence of an auditor, while carrying out a code of conduct audit at Nepal on behalf of a German client, wanted all toilets to be provided with toilet papers, arguing about unhygienic practices!