Corporate Integrity Plays Large Role in Business Misconduct, Survey Reveals

Corporate Integrity Plays Large Role in Business Misconduct, Survey Reveals

Corporate Integrity Plays Large Role in Business Misconduct, Survey Reveals

The Corporate Executive Board, a research and advisory company, has released data from a recent survey indicating that corporate performance may be directly linked to the integrity of the corporation’s environment.  The data indicates that companies with a weak ethical culture experience misconduct at a rate ten times higher than companies with strong ethical cultures.  The Corporate Executive Board was able to isolate the key components of cultural integrity through the research and the role it plays in corporate risk.

The group believes that the culture of a company is underappreciated as a reason for increased corporate risk.  However, they say the data clearly shows that the best way companies can decrease their risk of misconduct and rule bending is by having open communication between management and employees.  The group says that many employees are privy to acts of misconduct within organizations, but are unwilling to “out” the wrongdoings for fear of repercussions. 

According to the data, the best way to ensure that any problems occurring in the organization end is by employees trusting that management will correct the problem when brought to their attention.  However, the environment in corporations with weak ethics often times leads employees that being a “whistle-blower” will only cause more problems for them, including termination.

The research found that corporations falling into their definition of strong ethical cultures and open communications between management and employees returned an average of 5% more income to shareholders than those companies with weak ethical cultures.  The study also found that managers capable of exhibiting strong corporate values were able to increase their employees’ performance by nearly 12%.  However, the most telling finding was that employees working in a high-integrity workplace saw business misconduct occur 67% less than those working in a low-integrity workplace.


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