While technically true, the term has been largely co-opted by the A/V realm. It’s pretty rare to hear outside of the context.
Rare for people who don't deal with encoding and decoding maybe.
To be clear the codec implements the compression (or other encoding) algorithm. So when talking about codec's we mean the implementation. But when talking about the algorithm, we are talking about the standard of encoding the encoder or decoder implements.
You commonly encounter the term when you want to do bytes to string conversions and vice versa on Python: https://docs.python.org/3/library/codecs.html