live webcast corporate culture - ethisphere magazine · 2017-05-09 · 11% 5% 4% 2% 2% 2% 2% 2% 15%...
TRANSCRIPT
Live Webcast Corporate CultureMethods to Communicate Ethics, Measure Culture
and Impact Compliance Engagement
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Before We Get Started
§ Today’s presentation and recording will be provided via email after the webcast
§ BELA members can access the materials directly from the resources center on the members site
§ Please submit questions via the chat function on the left-hand side of your screen
Part 1
E&C Programs: Autonomy, Resources
and Operational Efficiency
April 26, 2017
Part 2
Measuring, Communicating and Empowering Culture
Today, May 9, 2017
Part 3
Governance and Program Oversight
Tuesday, June 6, 20171-2 pm ET
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Speakers
Karen BensonDirector, Global Compliance and Ethics
Royal Caribbean Cruises Ltd.
Douglas AllenDirector, Data & Advisory Services
Ethisphere
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Agenda
§ About Ethisphere§ How Our Data is Comprised§ 2017 Honoree Profile§ The “Ethics Premium”§ Empowering Leadership and Communicating Ethics§ Efforts to Measure an Ethical Corporate Culture§ Trends from Ethical Culture Dataset
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Ethisphere is the Global Leader in Advancing the Standards of Ethical Business Practices
MEASURE AGAINST STANDARDS
Our corporate ethics standards, vetted by leading experts and used
for 10 years, provide an independent, objective measurement
tool critical to drive business decisions and stakeholder
interaction.
RECOGNIZEEXCELLENCE
We recognize programs and companies who’ve proven that their
programs and practices are extraordinary and provide
mechanisms to help communicate those recognitions.
INSPIREADVANCEMENT
Ethisphere’s global summits, roundtables and publications capture
the leading voices in the field. And our corporate membership group provides unparalleled networking
opportunities.
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How Our Data is Comprised: The Ethics Quotient®
A confidential set of data unlike any other:
§ Five weighted assessment areas that provide a holistic view into the organization
§ Regularly updated and refined to fit evolving expectations and regulations
The Ethics Quotient framework is designed to capture data on ethical culture, compliance programs, policy and procedure as well as other aspects of an ethical organization, in a consistent and standardized way.
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Actionable Data Drives Decisions
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Profile of the 2017 Honorees and Data Set
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The Ethics Premium: 6.6% Performance of the 2017 Honorees as compared to the US Large Cap Index over the 2015-2016 calendar years
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Empowering Leadership and Communicating Ethics
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Do you provide targeted training to managers on their special compliance and ethics responsibilities?
83%86%
90%93%
2014 2015 2016 2017
72%
9%
12%
7%
Yes, to all managers
Yes, more than half of managers
Yes, less than half of managers
No
Yes, to all managers
WMEC Honorees 2017 WMEC Honorees
Respondents were asked to not include as part of their answer manager training regarding sexual harassment as required in specific jurisdictions
2017
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77%
76%
74%
62%
62%
52%
51%
40%
27%
Videos or other multimedia resources
Toolkit or meetings-in-a-box
Visual materials for managers for direct reports
Scheduled discussion time with C&E staff
Scheduled discussion time at manager meetings
Email templates for managers for direct reports
Incentives for ethics or promoting C&E program
C&E research, news for managers
Other resources
Which resources do you provide to managers to promote compliance and ethics within the company?
The most common resources provided are available on-demand, while fewer provide face time.
The better the tools provided to managers, the more effective they can be in fostering the right culture by choosing the tools that are right for them.
2017 WMEC Honorees
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94%93%
80%60%
49%31%31%
28%27%
12%9%
7%6%
Personalized letter of introduction to the CodeInternal meetings involving senior leadership
Company-wide meetings lead by senior leadershipIntranet site video
NewsletterSocial media
Interactive Q&A forum, chat functionalityOther
C&E blog by member(s) of senior leadershipEmails to the workforce
Personalized introduction to C&E trainingOnboarding video
Podcast
Which compliance and ethics communications involve senior executives outside the compliance function?
Honorees on average include senior leaders in 7 separate communication modalitieswhen discussing compliance and ethics within their company
2017 WMEC Honorees
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Efforts to Measure an Ethical Culture
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Which of the following describes your company’s approach to measuring corporate ethical culture?
77%
73%
69%
66%
66%
57%
49%
22%
Add questions on ethical culture in HR engagement survey
Review social media or feedback websites
Management interviews on ethical culture
Employee focus groups or individual interviews
Physical site visits and assessments
Dedicated survey on ethical culture or C&E program
Formal review after investigations that include ethical culture
Our company's uses a unique approach
Honorees, on average, utilize nearly 5 separate methods to measure their corporate ethical culture.
2017 WMEC Honorees
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How frequently does your company administer its ethical culture survey(s)?
50%
3%
34%
8%
4%
37%
1%
31%
14%
16%
At least annually
Every 18 months
Every two years
Every three or more years
Ad hoc
Employee Engagement Survey Dedicated Ethical Culture Survey
2017 WMEC Honorees That Measure Ethical Culture Through Surveys
While frequency varies, leading companies often measure their ethical culture at least every two years
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With whom do you partner with for your ethical culture-related survey(s)?
11%
5%
4%
2%
2%
2%
2%
2%
15%
CEB CELC Risk Clarity
Ethisphere
ECI
Bain & Company
Denison Consulting
IBM/Kenexa
SAI Global
Great Place to Work
Other
10%8%8%
6%6%
6%6%
5%3%
2%2%2%
24%
IBM/KenexaAon
WillisTowersWatsonCEB-Gartner
Mercer-SirotaHay GroupPerceptyx
GallupGreat Place to Work
McKinseyQualtrics
Press GaneyOther
Employee Engagement Survey Partners Used by 2017 WMEC Honorees
Ethical Culture Survey Partners Used by 2017 WMEC Honorees
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Trends from Ethical Culture Dataset
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Awareness of the Program & Resources
Perceptions of the Function
Observing & Reporting Misconduct Pressure
Organizational Justice Manager Perceptions Perceptions of
LeadershipPerceptions of Peers
and Environment
Ethisphere’s Eight Pillars of Ethical CultureIn partnership with the BELA community, 2016 saw the launch of our Ethical Culture and Perceptions Assessment. The survey-based assessment is built off of our Eight Pillars of Culture, which are the culmination of what we have seen to be key to an ethical culture over the past decade.
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Ethisphere’s Eight Pillars of Ethical CultureAggregate Benchmark Results to Date
92%
90%
90%
89%
88%
81%
72%
72%
Awareness of Program & Resources
Perceptions of the Function
Perceptions of Peers and Environment
Manager Perceptions
Observing and Reporting Misconduct
Perceptions of Leadership
Pressure
Organizational Justice
Employees’ highest perceived elements of
culture and ethics are those areas where Compliance
professionals invest heavily – awareness and
perception of Code, policies, and training.
Proportion of Favorable Responses to Overall Responses
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Positive Program Perceptions Reflect Strong Program InvestmentQuestions from Pillar 1: Awareness of Program & Resources
96%
95%
95%
94%
93%
93%
89%
Awareness of ethical expectations
Ability to locate our Code
Know how to report concerns
Familiarity with company values
Ability to locate policies and procedures
Understanding of consequences of misconduct
Perception that company follows its values
Proportion of Favorable Responses to Overall Responses
Employees report a strong perception of their own ability to navigate the
program, however fewer believe the company follows its own values.
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Strong Willingness to Reach Out Contradicts Low Number of Employees Actually Reporting Questions from Pillar 3: Observing & Reporting Misconduct
93%
88%
84%
81%
81%
52%
50%
I am willing to report or raise a concern
Belief that my manager follows non-retaliation policy
I have observed misconduct over the past 12 months
Awareness of non-retaliation policy
Belief that the company follows non-retaliation policy
I was satisfied with the reporting process
I reported the misconduct observed
Proportion of Favorable Responses to Overall Responses
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Reasons given to report misconduct if observed
91%
63%
54%
45%
42%
21%
18%
It's the right thing to do
Correction action is necessary
My manager will support me
Senior leadership will support me
Reporting is anonymous
Other
If I don't do it, no one else will
Proportion of Respondents NOT Willing to Report Perceived Misconduct
Leadership support is critical, but doing the right thing and a sense of
justice is the primary reason why employees are willing to report a concern.
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Reasons given to NOT report misconduct if observed
44%
42%
33%
24%
9%
Fear retaliation
Nothing would happen
Lack of anonymity in reporting
Responsible party is senior level
I'm not concerned
Proportion of Respondents NOT Willing to Report Perceived Misconduct
Fear and a lack of transparency are leading causes for why employees are
not willing to report
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Managers Remain the Number One Resource for Asking Questions or Submitting a ReportHow did you report the perceived misconduct?
Proportion of Respondents Indicating they Reported Perceived Misconduct
59%
29%
18%
17%
8%
7%
6%
Immediate manager
HR representative
Manager's manager
C&E representative
Other
Hotline
Web-based portal
Employees are 8x more likely to go to a trusted internal contact with concerns
instead of using the Reporting Helpline orWeb-Based Portal
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Frequency of Pressure to Commit MisconductHow Frequently Do You Experience Pressure to Compromise the Code, Policies, or the Law in Order to Achieve Business Goals?
3%
7%
11%
72%
7%
Frequently
Occasionally
Rarely
Never
Decline to answer
One-third report experiencing moderate pressure, while 8% of employees say this pressure is strong
Percentage of Respondents that Reported Experiencing Some Level of Pressure
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Sources of Pressure to Commit MisconductPillar 4: Pressure to Commit Misconduct
33%
27%
26%
22%
19%
9%
9%
8%
5%
Middle management
Immediate manager
Senior leadership
Co-workers
Customers
Subordinates
Business partners
Suppliers
Other
Percentage of Respondents that Reported Experiencing Some Level of Pressure
More than a quarter of employees indicate feeling some level of pressure to compromise policy, the Code, or law to
achieve business goals.
Those in positions of authority are the top three most commonly cited sources of
this pressure.
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Communicating Ethics and Measuring Culture DiagnosticBenchmark how you are communicating and measuring ethical culture at your organization against leading companies
