A recent study is turning the old expression of nice guys finishing last on its head. The Corporate Executive Board surveyed about 500,000 employees in over 85 countries and concluded that corporate integrity has a verifiable impact on a company’s overall performance.
Companies where employees feel comfortable to speak out about concerns of misconduct without fear of persecution are found to have a stronger ethical culture than others. The fear of retaliation in companies prevents an ethical culture from taking root and growing that would allow the business from reaping rewards.
Corporate leaders that stress open communications are able to deliver shareholder returns that average five times higher than their competitors. Also, high-integrity cultured companies are 67 percent less likely to have instances of misconduct such as accounting irregularities and insider trading.
The study measured ethical culture by asking employees how comfortable they feel to discuss possible misconduct with managers along with do employees think company officials will respond to unethical behavior.
To prevent misconduct in a company, leaders must open channels of communications between employees and build trust in leadership.
Start taking steps now on the high road by having an updated employee handbook, effective and open channels of communication, management training, etc. It is never too late to walk on the corporate high road while boosting your bottom line.
No comments:
Post a Comment