Warren Buffett famously said “It takes 20 years to build a reputation and five minutes to lose it.”
Most organizational leaders focus on financial results and market position, yet 60% percent of a company’s market value is based on its reputation, according to a November 2011 global study commissioned by PR firm Weber Shandwick. This is why many companies have increased their efforts to build a good company reputation in the past few years. Six in ten executives say they would rather see their company in the news for ‘admired standing’ than for financial accomplishments.
The 2011 National Business Ethics Survey indicated the “percentage of employees who say their business has a weak ethics culture increased to 42 percent in 2011, the highest level since 2000.” There is reason to be concerned that the current weakness of ethics cultures could foreshadow a new surge in misconduct.
Consequently, an organization’s culture becomes paramount. Data shows that employees in organizations with strong ethical cultures and formal programs are 36 percentage points less likely to observe misconduct than employees in organizations with a weak culture and full formal programs. What you do counts much more than what you say.
Jacob Blass, Ethical Advocate president, published an article in the leading pharmaceutical publication, Pharma Compliance Monitor, pertaining to the financial implications of ethics in the pharma field.
While it focuses on the pharmaceutical industry, the suggestions contained therein apply to all. The article ends with a number of measurable steps leaders can take to help deepen the ethical culture in their organizations…
In addition to its anonymous hotline service, Ethical Advocate works with organizational leadership in deepening their ethical cultures with measurable concrete steps.
Contact us to talk about how to create a strong ethical culture within your organization.