Corruption Crime & Compliance Another Look at the Importance of Corporate Culture
LRN has issued another important report. In its latest report, The 2024 Benchmark of Ethical Culture Report, LRN has focused on the critical issue of corporate culture. LRN is a pacesetter and the leader in reliable studies on complex ethics and compliance issues. If not properly promoted or maintained, a defective culture can lead to serious misconduct, government investigation, reputational damage, and collateral harm. On the other hand, a positive and effective culture is a company's most valuable intangible asset, as it is tied directly to increased financial performance and sustainable growth. Over the past few years, business leaders have embraced what compliance and governance professionals already knew: companies with strong ethical cultures outperform other companies with weaker cultures. Employees at ethical companies are more productive, more satisfied, less likely to seek a new job, and more committed to the company's mission.
Hear Michael discuss:
- LRN's 2024 Benchmark of Ethical Culture Report underscores the importance of ethical culture in driving financial performance and reducing misconduct rates.
- Generation Z shows a higher tolerance for unethical conduct, with nearly a quarter admitting to engaging in such behavior to get the job done.
- Hybrid workers who alternate between working from home and the office exhibit lower rates of misconduct and are more likely to report observed misconduct due to increased job satisfaction.
- Organizations with strong ethical cultures outperform those with moderate to weak cultures by at least 50% across various business performance measures.
- Employees at companies with strong ethical cultures are 1.5 times more likely to report observed misconduct, emphasizing the value of a positive work environment.
- Senior leaders often have more favorable perceptions of their organization's culture than middle management and frontline workers, highlighting the need for consistent messaging.
- LRN's research shows that nearly 70% of the variance in business performance is linked to an organization's ethical culture, emphasizing the critical role of culture in success.
Resources
LRN’s 2024 Benchmark of Ethical Culture Report
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