Corporate Integrity Equals Organizational Performance

by Jul 16, 2012

Companies that encourage employees to speak up about misbehavior and to communicate openly average shareholder returns 5% higher than competitors who do not encourage these behaviors, according to a Corporate Executive Board (CEB) survey cited in the January issue of T+D Magazine. The survey included 500,000 employees from 150 global companies in 85 countries.

The survey also showed that high integrity cultures are 67% less likely to see major incidences of violations of law or company policy, including harassment, finance fraud, and regulatory violations. On the other hand, in companies with a culture not focused on integrity these (mis)behaviors are 10 times more prevalent.

Further, and even more interesting, the survey indicated that when managers exhibit integrity their employees actually perform better – there was a 12% difference in employee performance between employees with integrity-driven managers and those without.

According CEB, seven specific characteristics drive corporate integrity:

1. comfort in speaking up
2. trust in colleagues
3. strong relationship with direct manager
4. tone from the top
5. clarity of expectations around compliance
6. openness of communication
7. organizational justice

In other words, organizations that focus on these seven values will see better performance, less misbehavior, better internal communication, increased shareholder returns, and a better bottom line.

Simply put, when employees trust their managers and each other they are more engaged. It’s no secret that engagement means performance.

Incivility, bullying, and harassment occur because the culture allows them to. Before starting inclusivity initiatives, you’ve got to stop bad behavior. Take this assessment to determine if your workplace fosters a positive culture.

 

About Catherine Mattice

Catherine Mattice, MA, SPHR, SHRM-SCP is President of consulting and training firm, Civility Partners, and has been successfully providing programs in workplace bullying and building positive workplaces since 2007. Her clients include Fortune 500’s, the military, several universities and hospitals, government agencies, small businesses and nonprofits. She has published in a variety of trade magazines and has appeared several times on NPR, FOX, NBC, and ABC as an expert, as well as in USA Today, Inc Magazine, Huffington Post, Entrepreneur Magazine, and more. Catherine is Past-President of the Association for Talent Development (ATD), San Diego Chapter and teaches at National University. In his book foreword, Ken Blanchard called her book, BACK OFF! Your Kick-Ass Guide to Ending Bullying at Work, “the most comprehensive and valuable handbook on the topic.” She recently released a second book entitled, SEEKING CIVILITY: How Leaders, Managers and HR Can Create a Workplace Free of Bullying.

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