how to gain company-wide insights with culture … · why corporate culture assessments matter t....
TRANSCRIPT
HOW TO GAIN COMPANY-WIDE INSIGHTS WITH CULTURE ASSESSMENTS
A SurveyGizmo Resourcewwwsurveygizmocom
Socially irresponsible and unethical behavior is catastrophic to
company value reputation and long-term sustainability
zzvv
2
Why Corporate Culture Assessments Matter
The best protection against compliance violations Experts say itrsquos about fostering a culture of ethics and compliance ndash one that is highly-dependent
on commitment action statements and conduct according to Michael Volkov CEO and owner of the Volkov Law Group
And there is no time to waste when it comes to configuring a culture that supports and promotes strong ethics In this short resource you will have the information you need to foster an ongoing mutually beneficial culture that encourages growth innovation and profitability
zzzzzz
Learn from Those Who Have Ethically Misstepped
When previously well-respected companies like Wells Fargo Uber or Mylan ndash the pharmaceutical company that makes the EpiPen ndash rake
in headlines such as
ldquoWells Fargo Adds $1 Billion to Possible Legal Costrdquo (Bloomberg)
ldquoUber tackles sex assault problem by pledging $5 million to trainingrdquo (The Denver Post)
ldquoThe EpiPen a Case Study in Health System Dysfunctionrdquo(The New York Times)
The conversation of these well-known entities shifts from unrivaled success toward creating copy-and-paste-worthy cultures to how can we get back on an ethical path In many similar high-profile scandals not much different than the examples listed above internal signals were likely apparent well before those headlines became reality
Essentially workplace toxicity boils down to the intricacies and entanglements of itrsquos culture
For example one Wells Fargo employee Angie Payden who was asked to create unauthorized accounts by any means possible drank hand sanitizer to reduce her anxiety ndash consuming at least one bottle a day Warning signals such as low employee engagement retaliation abuse of power or low morale may have been more apparent than the aforementioned company would let others believe
Historically compliance has been viewed as the naysayer and carries as much popularity as standardized tests Itrsquos not a function that people typically get excited about or race to be involved in if not mandatory And typically a ldquoget it done and off my platerdquo mentality sets a negative tone from the get go
Yet recent scandals like those previously mentioned show that compliance plays one of the most integral roles in long-term corporate success We will explore the ancillary benefits of a prominent ethical culture later in this guide
The compliance and even the ethics functions (yes they should be treated separately) should no longer be viewed with heavy stigmas or biases rather they should be viewed as a business enabler that safeguards the company away from risk and facilitates long-term success while ensuring integrity and ethical behavior
No matter your industry business size or annual revenue ndash compliance should be a fundamental layer to the organizationrsquos business ecosystem Moving forward and sustainably growing over a substantial period of time in todayrsquos landscape requires a keen eye to spot risks and warning signs well ahead of time ndash a responsibility that has been owned yet underappreciated by compliance for decades
On the following pages we will overview the importance of sustaining a compliance-first culture ndash a key ingredient to an effective compliance program according to Deloitte
3
Would you make bread without flour So why run a business without compliance
ldquoIn a business environment where reputational threats lurk around every corner a strong culture of ethics and compliance is the foundation of a robust risk management programrdquo according to Deloitte
Most common organizational offenses according to Paula Desio Deputy General Counsel United States Sentencing Commission USSC include
bull Environmental waste discharge bull Tax offensesbull Antitrust offensesbull Food and drug violations
Regardless of offense organizations ndash like individuals ndash carry the same criminal liability Organizations assume the liability of its employees Hence why the Commission went ahead and defined the aspects of a systemic compliance program and adjusted fines to take into account organizationrsquos efforts toward creating a compliance program
Even if organizationrsquos donrsquot meet every requirement the Commission acknowledges the effort taken toward building a program and often issues fine reduction rates and incentives if there is a noticeable effort taken
Itrsquos telling then why compliance has become front and center for organizations than in years past The consequences are grave No longer can organizations let compliance be deprioritized and slip under the rug The time is now for these programs to lead the charge forward
Creating building and maintaining an effective compliance program ndash those aligned with the Federal Guidelines -- is no easy feat However this short resource should provide you the high-level details on how to get started and why it makes good business sense to do so
And while compliance has historically been viewed as rigid and structured itrsquos important to remember the function has to be extremely flexible in order to meet the ever-changing needs of the organizationrsquos employees and those it does business with
Without flexibility baked into the framework the functionrsquos effectiveness is proven to dwindle in respect to influencing ethical behavior
4
1 25
Establish policies procedures and controls
Oversight by high-level personnel
Reasonable steps to achieve compliance
which include systems for monitoring
auditing and reporting suspected wrongdoing without fear of reprisal
36
Due care in delegating substantial
discretionary authority
Consistent enforcement of
compliance standards including disciplinary
mechanisms
47
Effective communication to
all levels of employees
Reasonable steps to respond to and prevent further similar offenses
upon detection of a violation
5
Effective compliance programs contain the following elements as outlined by the USSC commonly referred to as the ldquoSeven Elementsrdquo
ldquoThe organizational guidelines criteria embody broad principles that taken together describe a corporate lsquogood citizenshiprsquo model but do not offer precise details for implementation This approach was deliberately selected in order to encourage flexibility and independence by organizations in designed programs that are best suited to their particular circumstancesrdquo says Paul Desio Deputy General Counsel USSC
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
zzvv
2
Why Corporate Culture Assessments Matter
The best protection against compliance violations Experts say itrsquos about fostering a culture of ethics and compliance ndash one that is highly-dependent
on commitment action statements and conduct according to Michael Volkov CEO and owner of the Volkov Law Group
And there is no time to waste when it comes to configuring a culture that supports and promotes strong ethics In this short resource you will have the information you need to foster an ongoing mutually beneficial culture that encourages growth innovation and profitability
zzzzzz
Learn from Those Who Have Ethically Misstepped
When previously well-respected companies like Wells Fargo Uber or Mylan ndash the pharmaceutical company that makes the EpiPen ndash rake
in headlines such as
ldquoWells Fargo Adds $1 Billion to Possible Legal Costrdquo (Bloomberg)
ldquoUber tackles sex assault problem by pledging $5 million to trainingrdquo (The Denver Post)
ldquoThe EpiPen a Case Study in Health System Dysfunctionrdquo(The New York Times)
The conversation of these well-known entities shifts from unrivaled success toward creating copy-and-paste-worthy cultures to how can we get back on an ethical path In many similar high-profile scandals not much different than the examples listed above internal signals were likely apparent well before those headlines became reality
Essentially workplace toxicity boils down to the intricacies and entanglements of itrsquos culture
For example one Wells Fargo employee Angie Payden who was asked to create unauthorized accounts by any means possible drank hand sanitizer to reduce her anxiety ndash consuming at least one bottle a day Warning signals such as low employee engagement retaliation abuse of power or low morale may have been more apparent than the aforementioned company would let others believe
Historically compliance has been viewed as the naysayer and carries as much popularity as standardized tests Itrsquos not a function that people typically get excited about or race to be involved in if not mandatory And typically a ldquoget it done and off my platerdquo mentality sets a negative tone from the get go
Yet recent scandals like those previously mentioned show that compliance plays one of the most integral roles in long-term corporate success We will explore the ancillary benefits of a prominent ethical culture later in this guide
The compliance and even the ethics functions (yes they should be treated separately) should no longer be viewed with heavy stigmas or biases rather they should be viewed as a business enabler that safeguards the company away from risk and facilitates long-term success while ensuring integrity and ethical behavior
No matter your industry business size or annual revenue ndash compliance should be a fundamental layer to the organizationrsquos business ecosystem Moving forward and sustainably growing over a substantial period of time in todayrsquos landscape requires a keen eye to spot risks and warning signs well ahead of time ndash a responsibility that has been owned yet underappreciated by compliance for decades
On the following pages we will overview the importance of sustaining a compliance-first culture ndash a key ingredient to an effective compliance program according to Deloitte
3
Would you make bread without flour So why run a business without compliance
ldquoIn a business environment where reputational threats lurk around every corner a strong culture of ethics and compliance is the foundation of a robust risk management programrdquo according to Deloitte
Most common organizational offenses according to Paula Desio Deputy General Counsel United States Sentencing Commission USSC include
bull Environmental waste discharge bull Tax offensesbull Antitrust offensesbull Food and drug violations
Regardless of offense organizations ndash like individuals ndash carry the same criminal liability Organizations assume the liability of its employees Hence why the Commission went ahead and defined the aspects of a systemic compliance program and adjusted fines to take into account organizationrsquos efforts toward creating a compliance program
Even if organizationrsquos donrsquot meet every requirement the Commission acknowledges the effort taken toward building a program and often issues fine reduction rates and incentives if there is a noticeable effort taken
Itrsquos telling then why compliance has become front and center for organizations than in years past The consequences are grave No longer can organizations let compliance be deprioritized and slip under the rug The time is now for these programs to lead the charge forward
Creating building and maintaining an effective compliance program ndash those aligned with the Federal Guidelines -- is no easy feat However this short resource should provide you the high-level details on how to get started and why it makes good business sense to do so
And while compliance has historically been viewed as rigid and structured itrsquos important to remember the function has to be extremely flexible in order to meet the ever-changing needs of the organizationrsquos employees and those it does business with
Without flexibility baked into the framework the functionrsquos effectiveness is proven to dwindle in respect to influencing ethical behavior
4
1 25
Establish policies procedures and controls
Oversight by high-level personnel
Reasonable steps to achieve compliance
which include systems for monitoring
auditing and reporting suspected wrongdoing without fear of reprisal
36
Due care in delegating substantial
discretionary authority
Consistent enforcement of
compliance standards including disciplinary
mechanisms
47
Effective communication to
all levels of employees
Reasonable steps to respond to and prevent further similar offenses
upon detection of a violation
5
Effective compliance programs contain the following elements as outlined by the USSC commonly referred to as the ldquoSeven Elementsrdquo
ldquoThe organizational guidelines criteria embody broad principles that taken together describe a corporate lsquogood citizenshiprsquo model but do not offer precise details for implementation This approach was deliberately selected in order to encourage flexibility and independence by organizations in designed programs that are best suited to their particular circumstancesrdquo says Paul Desio Deputy General Counsel USSC
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
zzzzzz
Learn from Those Who Have Ethically Misstepped
When previously well-respected companies like Wells Fargo Uber or Mylan ndash the pharmaceutical company that makes the EpiPen ndash rake
in headlines such as
ldquoWells Fargo Adds $1 Billion to Possible Legal Costrdquo (Bloomberg)
ldquoUber tackles sex assault problem by pledging $5 million to trainingrdquo (The Denver Post)
ldquoThe EpiPen a Case Study in Health System Dysfunctionrdquo(The New York Times)
The conversation of these well-known entities shifts from unrivaled success toward creating copy-and-paste-worthy cultures to how can we get back on an ethical path In many similar high-profile scandals not much different than the examples listed above internal signals were likely apparent well before those headlines became reality
Essentially workplace toxicity boils down to the intricacies and entanglements of itrsquos culture
For example one Wells Fargo employee Angie Payden who was asked to create unauthorized accounts by any means possible drank hand sanitizer to reduce her anxiety ndash consuming at least one bottle a day Warning signals such as low employee engagement retaliation abuse of power or low morale may have been more apparent than the aforementioned company would let others believe
Historically compliance has been viewed as the naysayer and carries as much popularity as standardized tests Itrsquos not a function that people typically get excited about or race to be involved in if not mandatory And typically a ldquoget it done and off my platerdquo mentality sets a negative tone from the get go
Yet recent scandals like those previously mentioned show that compliance plays one of the most integral roles in long-term corporate success We will explore the ancillary benefits of a prominent ethical culture later in this guide
The compliance and even the ethics functions (yes they should be treated separately) should no longer be viewed with heavy stigmas or biases rather they should be viewed as a business enabler that safeguards the company away from risk and facilitates long-term success while ensuring integrity and ethical behavior
No matter your industry business size or annual revenue ndash compliance should be a fundamental layer to the organizationrsquos business ecosystem Moving forward and sustainably growing over a substantial period of time in todayrsquos landscape requires a keen eye to spot risks and warning signs well ahead of time ndash a responsibility that has been owned yet underappreciated by compliance for decades
On the following pages we will overview the importance of sustaining a compliance-first culture ndash a key ingredient to an effective compliance program according to Deloitte
3
Would you make bread without flour So why run a business without compliance
ldquoIn a business environment where reputational threats lurk around every corner a strong culture of ethics and compliance is the foundation of a robust risk management programrdquo according to Deloitte
Most common organizational offenses according to Paula Desio Deputy General Counsel United States Sentencing Commission USSC include
bull Environmental waste discharge bull Tax offensesbull Antitrust offensesbull Food and drug violations
Regardless of offense organizations ndash like individuals ndash carry the same criminal liability Organizations assume the liability of its employees Hence why the Commission went ahead and defined the aspects of a systemic compliance program and adjusted fines to take into account organizationrsquos efforts toward creating a compliance program
Even if organizationrsquos donrsquot meet every requirement the Commission acknowledges the effort taken toward building a program and often issues fine reduction rates and incentives if there is a noticeable effort taken
Itrsquos telling then why compliance has become front and center for organizations than in years past The consequences are grave No longer can organizations let compliance be deprioritized and slip under the rug The time is now for these programs to lead the charge forward
Creating building and maintaining an effective compliance program ndash those aligned with the Federal Guidelines -- is no easy feat However this short resource should provide you the high-level details on how to get started and why it makes good business sense to do so
And while compliance has historically been viewed as rigid and structured itrsquos important to remember the function has to be extremely flexible in order to meet the ever-changing needs of the organizationrsquos employees and those it does business with
Without flexibility baked into the framework the functionrsquos effectiveness is proven to dwindle in respect to influencing ethical behavior
4
1 25
Establish policies procedures and controls
Oversight by high-level personnel
Reasonable steps to achieve compliance
which include systems for monitoring
auditing and reporting suspected wrongdoing without fear of reprisal
36
Due care in delegating substantial
discretionary authority
Consistent enforcement of
compliance standards including disciplinary
mechanisms
47
Effective communication to
all levels of employees
Reasonable steps to respond to and prevent further similar offenses
upon detection of a violation
5
Effective compliance programs contain the following elements as outlined by the USSC commonly referred to as the ldquoSeven Elementsrdquo
ldquoThe organizational guidelines criteria embody broad principles that taken together describe a corporate lsquogood citizenshiprsquo model but do not offer precise details for implementation This approach was deliberately selected in order to encourage flexibility and independence by organizations in designed programs that are best suited to their particular circumstancesrdquo says Paul Desio Deputy General Counsel USSC
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Would you make bread without flour So why run a business without compliance
ldquoIn a business environment where reputational threats lurk around every corner a strong culture of ethics and compliance is the foundation of a robust risk management programrdquo according to Deloitte
Most common organizational offenses according to Paula Desio Deputy General Counsel United States Sentencing Commission USSC include
bull Environmental waste discharge bull Tax offensesbull Antitrust offensesbull Food and drug violations
Regardless of offense organizations ndash like individuals ndash carry the same criminal liability Organizations assume the liability of its employees Hence why the Commission went ahead and defined the aspects of a systemic compliance program and adjusted fines to take into account organizationrsquos efforts toward creating a compliance program
Even if organizationrsquos donrsquot meet every requirement the Commission acknowledges the effort taken toward building a program and often issues fine reduction rates and incentives if there is a noticeable effort taken
Itrsquos telling then why compliance has become front and center for organizations than in years past The consequences are grave No longer can organizations let compliance be deprioritized and slip under the rug The time is now for these programs to lead the charge forward
Creating building and maintaining an effective compliance program ndash those aligned with the Federal Guidelines -- is no easy feat However this short resource should provide you the high-level details on how to get started and why it makes good business sense to do so
And while compliance has historically been viewed as rigid and structured itrsquos important to remember the function has to be extremely flexible in order to meet the ever-changing needs of the organizationrsquos employees and those it does business with
Without flexibility baked into the framework the functionrsquos effectiveness is proven to dwindle in respect to influencing ethical behavior
4
1 25
Establish policies procedures and controls
Oversight by high-level personnel
Reasonable steps to achieve compliance
which include systems for monitoring
auditing and reporting suspected wrongdoing without fear of reprisal
36
Due care in delegating substantial
discretionary authority
Consistent enforcement of
compliance standards including disciplinary
mechanisms
47
Effective communication to
all levels of employees
Reasonable steps to respond to and prevent further similar offenses
upon detection of a violation
5
Effective compliance programs contain the following elements as outlined by the USSC commonly referred to as the ldquoSeven Elementsrdquo
ldquoThe organizational guidelines criteria embody broad principles that taken together describe a corporate lsquogood citizenshiprsquo model but do not offer precise details for implementation This approach was deliberately selected in order to encourage flexibility and independence by organizations in designed programs that are best suited to their particular circumstancesrdquo says Paul Desio Deputy General Counsel USSC
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
1 25
Establish policies procedures and controls
Oversight by high-level personnel
Reasonable steps to achieve compliance
which include systems for monitoring
auditing and reporting suspected wrongdoing without fear of reprisal
36
Due care in delegating substantial
discretionary authority
Consistent enforcement of
compliance standards including disciplinary
mechanisms
47
Effective communication to
all levels of employees
Reasonable steps to respond to and prevent further similar offenses
upon detection of a violation
5
Effective compliance programs contain the following elements as outlined by the USSC commonly referred to as the ldquoSeven Elementsrdquo
ldquoThe organizational guidelines criteria embody broad principles that taken together describe a corporate lsquogood citizenshiprsquo model but do not offer precise details for implementation This approach was deliberately selected in order to encourage flexibility and independence by organizations in designed programs that are best suited to their particular circumstancesrdquo says Paul Desio Deputy General Counsel USSC
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Leaders rated highly ethical tend to have followers who engage with more organizational citizenship behaviors and who are more willing to bring problems to the leadersrsquo attention Because top executives set the moral tone for an organization they need to set high ethical standards demonstrate them through their own behavior and encourage and reward integrity in others while avoiding abuses of power such as giving themselves large raises and bonuses while seeking to cut costs by laying off longtime employees
ldquo
ndash Essentials of Organizational Behavior by Stephen P Robbins and Timothy A Judge
rdquo
6
Tone from the Top Down ndash Ethics and Leadership
Some of the best leaders also suffer from ethical shortcomings Itrsquos imperative to remain cognizant of where decisions stand in the light of ethics Without keeping it top-of-mind the risk for making detrimental decisions at the highest level becomes greater
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Doing so exemplifies actively embracing the culture shift many organizations are taking advantage of
ldquoMaking good ethical decisions requires a trained sensitivity to ethical issues and a practiced method for exploring the ethical aspects of a decision and weighing the considerations that should impact our choice of actionrdquo according to Brown University
ldquoEthics provides a set of standards for behavior that helps us decide how we ought to act in a range of situationsrdquo says Brown ldquoIn a sense we can say that ethics is all about making choices and about providing reasons why we should make these choicesrdquo
bull Recognizing an ethical issue Locate as best as you can the specific ethical aspects of the issue at hand
bull Consider the parties involved Reflect on all the individual contributors and groups who many be directly impacted by decisions who may be harmed or who may benefit
bull Gather all the relevant information Before doing anything or taking action of any kind do your homework and make sure all information sources are verified and aware of the issue
bull Formulate actions and consider alternatives Ask any and all questions yoursquod imagine being faced with answering and be at the ready for varying options
bull Make a decision and consider it After all is said and done how will you feel about your choice
bull Act Ethical situations are not necessary the easiest situations to handle Itrsquos best to keep in mind that yoursquoll never have all of the answers but action is always necessary ndashnever sit idle
A framework that can help when making ethically sound judgements Brown University suggests the following process
7
How to Validate Business Decisions with Ethical Frameworks
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Ian Palmer Richard Dunford and Gib Akin put it best in their 2009 text Managing Organization Change A Multiple Perspectives Approach when they
outlined the pressures around reputation and credibility
ldquochange is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation Corporate reputation defined as a lsquocollective representation of a firmrsquos past actions and result that describes the firmrsquos ability to deliver valued outcomes to multiple stakeholdersrsquo as an intangible but important corporate asset being positively correlated with organizational performance Maintaining and enhancing corporate reputation is therefore an important part of managing firm survivalrdquo (p 59)
ldquoThe Burke-Litwin model shows the various drivers of change and ranks them in terms of importancerdquo according to the Journal of Management ldquoThe model argues that all of the factors are integrated (to greater or lesser degrees) Therefore a change in one will eventually affect all other factorsrdquo
Transformational change Major change
Transactional change Incremental change The transformational factors in the Burke-Litwin model
bull External environment Includes factors such as markets legislation competition and the economy
bull Mission and strategy An organizationrsquos mission articulates its reason for existing
bull Leadership Considers the attitudes and behavior of senior colleagues and how these behaviors are perceived by the organization as a whole
bull Organizational culture Can be described as ldquothe way we do things around hererdquo
bull Structure Very often changes in strategy can lead to changes in the way the organization is structured
bull Work unit climate Considers employeesrsquo perception of their immediate colleagues and working environment
bull Task requirements and individual skillsabilities Change at a higher level in the organization
bull Individual needs and values Changes to team membership can mean a change in the team dynamic
bull Employee motivation Considers the significance of individual and organizational goals
8
How to Validate Business Decisions with Ethical Frameworks
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
The ROI of Ethical Behavior
An organization has the capacity to do well and do good
ldquoA company should want customers who are willing to go the extra mile to purchase its services employees who give their all for the organization suppliers who feel themselves to be genuine lsquopartnerrsquo with the organization and therefore seek the deliver their best work to the company and in a timely manner and a community that vigorously supports the companyrsquos legitimate business interestsrdquo
- The Enthusiastic Employee David Sirota and Douglas A Klein Second Edition
Considered essential for business leaders to read Built to Last published in the early 1990s found a strong correlation
between long-term success and organizations ndash alongside their leading competitors ndash that ldquodo goodrdquo The supporting research was conducted over a six year period by the bookrsquos authors
Jim Collins and Jerry Porras at the Stanford University Graduate
School of Business
ldquoIn 18 such paired comparisons the best companies far outperformed the comparison companies on average as well as
the market as a whole over the long termrdquo writes David Sirota
and Douglas A Klein in The Enthusiastic Employee ldquoFor example $1 invested in the best companies on January 1 1926 would have been worth $6356 on December 31 1990
Itrsquos not only clear in these findings even 27 years later that being an ethically-driven company better positions a company for
long-term success but when companies actively contribute to the greater good it has lasting effects on retention rates loyalty and the bottom-line
ldquoWorkers start their employment caring a lot about the companyrdquo says Sirota and Klein ldquoWhen their caring diminishes it is largely because of the characteristics of management and the company not those of the individual For example people find it difficult to be loyal to or feel pride in organizations that treat employees as little more than costs to be tolerated or reduced rather than as genuine assets to the businessrdquo
Additionally another study conducted by Harvard University found companies indicated four times the growth rate and eight times the employment growth of companies that focus on shareholders
Other reasons to maintain high ethical standards for companies big or small include according to Sirota and Klein
bull The impact of broad corporate reputation
bull The trust it inspires on purchasing decisions
bull Majority of consumers switch brands or retailers to ones associated with a good cause
bull Helps organizations favorably differentiate its brand from the competition
9
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Individual companies are judged using criteria that is is based on five elements These elements are then aggregated to form an ldquoEthics Quotientrdquo score which is comprised of
Organizations can pay to be evaluated on the efficacy of their ethical standards Ethisphere an independent firm that publishes an annual list of the worldrsquos most ethical companies has spearheaded this effort for over a decade The company that have made the list time and again include
For the full Worldrsquos Most Ethical Companies list see here
bull Aflacbull Deere amp Companybull Ecolabbull Fluorbull GEbull International Paper bull Kao Corporation
1 2A companyrsquos ethics and compliance
program
Embedded ethics in the companyrsquos culture from top
to bottom 3 Corporate citizenship 4 Corporate
governance 5 Leadership innovation
and reputation
Establish a vision that is extends beyond profit
bull Milliken and Companybull PepsiCobull Starbucksbull Texas Instruments bull UPSbull Xerox
Companies that promote a strong ethical mission encourage employees to behave with integrity and provide strong leadership can influence employee decisions to behave ethically
ldquordquo
- ldquoManaging Organizational Changerdquo by Ian Palmer Richard Dunford Gib Akin
10
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
11
Aside from this sought-after highly-coveted designation these companies also have another common
denominator long-term success and profitability
ldquoUltimately the economics of [unethical] behavior exacts a heavy toll that is often paid in damaged lives
tarnished brands and crippled bottom linesrdquo says Sharon Allen chairman of the board of Deloitte
Ethical companies that tightly align culture with ethics see a stock growth rate of about double that of the
SampPrsquos 500 one of the leading market indicators
ldquoThat makes sense when you consider that organizations with superior ethical track records can attract the
talent and customers they need to sustain their growth far more easily and with less expense than those
burdened with questionable reputationsrdquo says Allen
Factoring in another variable to the ethical equation is what the incoming work force values when looking
to join a company By 2020 nearly half of the working population will be made up of ldquoMillennialsrdquo -- those
born roughly between 1981-1997 The way to attract this incoming talent is vastly different than traditional
recruitment tactics such as offering high starting salary a company car or extended vacation time
The new workforce looks at business from a stringent ethical lens a stark comparison to the values of
previous generations
In fact this generation is considered the first to value culture over salary and a recent study conducted by
Fidelity Investments confirms so with this staggering finding Millennials are willing to take on average a
$7600 pay cut in trade from an improved quality of work life ndash such as career development purposeful
work worklife balance and yes company culture
ldquoClearly many young professionals are thinking about more than money and are willing to sacrifice a portion
of their salary in exchange for a career move that more closely aligns with their values or passions or
improves their worklife balancerdquo said Kristen Robinson SVP Women amp Young Investors in the studyrsquos
press release announcement
Fostering this optimal culture is not only great to attract top talent but is beneficial for your bottom line
considering the proven financial gains In order to maintain an ethically attractive and lucrative culture
bull Corporate Social Responsibility
bull Diversity and Inclusion
bull Work-Life Balance
bull Ideas Above Things
bull Feedback and Growth
bull Engagement and Purpose
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
First and foremost the most telling cultural aspect of any company is how you feel when you walk into the office Do you see employees working contently
With frustration Is it tense or free-spirited Jovial or serious Do employees have pictures on their desks Do you hear laughter Do you see the companyrsquos values framed on the hallway walls
Each of these tidbits contribute to the bigger cultural picture of an organization No matter how small it may seem such as a framed photo it matters and should be considered when you examine culture
More often than not cultural assessments as sophisticated as they sound mostly rely on old fashioned interviews ndash conducted a few different ways including in-person digitally via survey or questionnaire or during annual performance reviews
ldquoIf your employees understand that they are all responsible for maintaining an ethicalcompliance culture then itrsquos the responsibility of the compliance department to make sure their employees know how to define compliance success and know how what steps they need to take to be successfulrdquo says Jenkins
How to Assess Organizational Culture
Methods for Assessing Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
Ideally a company would want to hire an unbiased third party that would
bull Review and assess the companyrsquos history
bull Conduct interviews and focus groups with employees at all levels of the organization to collect employee perspective
bull Ideally the third party would have the ability to benchmark against similar companiesindustries
But if you are like most Compliance Offices you have limited budget and you may want to bring groups together Think about the type of culture you want and the characteristics that make that culture up From there create your own culture assessment survey
12
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Elements of a Compliance-First Culture
Insights provided by Stephanie Jenkins Chief Compliance Officer at ethix360
bull All employees know that compliance is a shared responsibility
bull There is no fear of retaliation Those who raise concerns are praised and not punished
bull Compliance is built into the hiring and onboarding process promotions and bonuses This alleviates the check-the-box mentality
bull All employees are held to the same standards including leadership
bull Compliance is given the resources it needs to build a successful program
Some red flags that indicate an organizationrsquos culture is turning toxic according to Jenkins could include
1 Leadership takes the ldquoDo as I say not as I dordquo approach
2 Middle management shuts employee communication down and discourages employees from speaking up (even if leadership encourages it)
3 Employees feel like their efforts are wasted and nothing will ever change
4 Financial goals are the ONLY things that matters and management usually has a ldquoI donrsquot care how it gets done just make it happenrdquo mentality
5 An intentional and calculated compliance violation occurs For example givingreceiving bribes to other businesses to make more money
13
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
- Society for Human Resource Management
When an organization has a strong culture three things happen employees know how top management wants them to respond to any situation employees believe that the expected response is the proper one and employees know that they will be rewarded for demonstrating the organizationrsquos values
Think of culture as your organizationrsquos personality
ldquo
rdquoA brandrsquos personality allows itrsquos ideal consumer to relate to it which
increases a brandrsquos effectiveness and overall equity Having an established personality for a brand starts to create a framework that helps the holistic organization shape the way they feel about it
ldquoA personification of a brand provides insight into the most effective ways to communicate with a target audiencerdquo says Wagner dos Santos a managing partner at Wagner ldquoBridging the gap between consumers and brands requires a level of sensitivity and respect that goes beyond traditional thinkingrdquo
Meghan Biro a Forbes contributor put it best when she said that due to the saturated social media culture we live in brands are now ldquoallowedrdquo to build emotional connections with their customers Wersquod like to take this further and say it also extends to a companyrsquos employees
Thanks to social media we have an increased intimacy with brands
14
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
ldquoBrand humanization means opening up your company and culture and inviting customers inrdquo says Biro ldquoSo you have to know who you are you have to have a brand identity that is consistent yet allows employees room to express themselvesrdquo
Have you ever thought about your brand as if it was a person A great exercise to personify your brand starts with describing how the
brand would think and feel
When you allow yourself to take a step back you can identify a brandrsquos personality traits more clearly and understand the impression it makes on those who interact with it
This is an important aspect of culture ndash knowing it on a deeper level what makes it tick and what ultimately what allows employees and consumers relate to it
Carolyn Loomis a marketing communications expert and writer for MarketingProfs outlines the steps needed to be taken to identify a brandrsquos personality The process she says begins with
1 Would your brand be a male or female
2 Is he or she street-smart or book-smart
3 Is he or she social or an introvert
4 Does he or she have compassion or is he or she an authoritarian
5 Would you trust this person
ldquoQuestions should be about personality traitsrdquo says Loomis ldquoDonrsquot just look for positive traits thatrsquos not the point of the exercise Like all people your brand will be flawed Dig into [his or her] flaws and embrace them If for example you often fall behind on deliverables how would that reflect in your brandrsquos personalityrdquo
Evaluating the company from this perspective will broaden your understanding of its intricacies and nuances allow you to work itrsquos personality traits into everyday discussions and lay the strategic groundwork for establishing a world-class corporate culture
15
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Practice a Human-to-Human Approach
Experts say that having a strong corporate culture can account for 20-30 percent of a companyrsquos core differentiator Donrsquot risk
becoming culturally unremarkable Take the time to stand back assess and adjust accordingly so 2018 and beyond is set up for success
Throughout these processes of standing up and sustaining a healthy culture donrsquot forget your people Each step along the way ensure yoursquore checking-in with those inside the organization on how theyrsquore receiving the culture changes through consistent feedback sessions
ldquoIf you forget about your people you can forget about your culture perks and money have their limits in inspiring true commitmentrdquo says Forbes contributor William Arruda ldquoBusiness is a truly human endeavor and having a positive workplace culture makes for happier employees Happy employees will have a profound impact on your companyrsquos successrdquo
The human element should not only be carried throughout your companyrsquos strategic mission but be the linchpin for modern business growth and cultivation of a healthy and influential culture for others with bruised cultures to look up to
16
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social
Founded in 2006 SurveyGizmo is a powerful survey and data insights platform that empowers business professionals to make
informed decisions Through high-powered application software it offers user-friendly data collection tools for understanding your customers markets and employees in real time and communicating this information across an organization It provides data insights in over 205 countries with 50000 new surveys created and 75 million responses collected every week for customers like Fedex Microsoft Bloomberg Television and GE
ABOUT
Contact us anytime
Email hellosurveygizmocom
Call in the US 800-609-6480 Ext 1
Outside of the US +1-720-496-2990
Onlinesurveygizmocom
Our headquarters
4888 Pearl East Circle Suite 100 Boulder CO 80301 USA copy 2017 Widgix LLC dba SurveyGizmo
Social