Ethics at Work 2015 Survey of Employees Britain

Transcription

1 Survey Survey Ethcs at Work 2015 Survey of Employees Brtan By Danel Johnson Publshed by

2 2 IBE Ethcs at Work Survey 2015: Brtan Chapter 1 Insttute of Busness Ethcs What we do Advce The IBE was establshed n 1986 to promote hgh standards of busness behavour based on ethcal values. Events W e rase publc awareness of the mportance of dong busness ethcally. Research & Publcatons e help organsatons strengthen ther ethcal culture W through the sharng of knowledge and good practce. The IBE works at an nternatonal level, both wth our multnatonal subscrbers and n close afflaton wth other busness ethcs organsatons overseas. The IBE s a regstered charty, funded by corporate and ndvdual subscrptons. Subscrber support, both fnancal and ntellectual, helps us research, publsh, and provde tranng and tools to assst n the development of ethcal busness practce. Ethcs Tranng & Tools Busness Ethcs n Educaton Accredtaton Subscrbe today and be part of a network sharng good practce n busness ethcs. Advocacy Dong busness ethcally makes for better busness contents key fndngs ntroducton Chapter 1 Chapter 2 Chapter 3 Concluson appendces

3 1 Survey Ethcs at Work 2015 Survey of Employees Brtan By Danel Johnson

4 2 All rghts reserved. To reproduce or transmt ths book n any form or by any means, electronc or mechancal, ncludng photocopyng, recordng or by any nformaton storage and retreval system, please obtan pror permsson n wrtng from the publsher. Ethcs at Work: 2015 Survey of Employees - Brtan ISBN IBE Frst publshed November 2015 by the Insttute of Busness Ethcs 24 Greencoat Place London SW1P 1BE Regstered Charty No

5 3 Contents Page IBE Foreword 5 Natonal Revewer s Comment 6 Key Fndngs from Brtan 7 Introducton 8 Purpose of the survey 9 The questonnare 9 The analyss 9 Chapter 1 Atttudes to Ethcs at Work 10 Employee atttudes to travel expenses 10 Employee atttudes to ethcs n the workplace 11 Atttudes of managers to petty fddlng 13 Chapter 2 Experence of Ethcs at Work 15 Honesty n the workplace 15 Awareness of msconduct 16 Speakng up 18 Pressure to compromse organsatonal standards 20 Chapter 3 Supportng Ethcs at Work 24 Ethcs programmes 24 Use of ncentves to encourage ethcal 27 behavour n the workplace Indcators of an ethcal culture 28 Summary and Concluson 33 Appendces 34 1: Survey Questonnare 34 2: Methodology and Respondent Profle 39 Related IBE Publcatons 40

6 4 Author Danel Johnson s the Research Hub Manager at the Insttute of Busness Ethcs. He researches and wrtes on a number of busness ethcs topcs for the IBE, manages ts programme of publc and corporate surveys and engages n tranng and publc speakng to rase awareness of the subject. He holds a Master s Degree n Corporate Socal Responsblty from the ICCSR at Nottngham Unversty. Acknowledgements The IBE would lke to thank the followng companes for ther generous fnancal support of ths survey. Gold Supporters Slver Supporters Bronze Supporter Many people and organsatons have made ths survey report possble. In addton to the fnancal support provded by the companes lsted above, we are grateful to Ipsos MORI for ther help and support n producng the report. The author s thankful for the nput of all at the IBE, especally Joanna Hcks who edted the text and oversaw producton, and to Nel Pafford who desgned and lad out the fnal report. Rev. Dr. Smon Robnson also provded an nsghtful revew of an earler verson of the text.

7 5 IBE Foreword The IBE frst surveyed the Brtsh publc n work about ther atttudes to ethcs n ther workplace n It s exctng to be publshng the fndngs from our fourth Brtsh Ethcs at Work survey ten years later. Employees are the barometer by whch the temperature of ethcal busness can be measured. Employees approach to ethcs what they are wllng or not wllng to do and ther percepton of how they feel supported to do the rght thng s crucal to understandng what makes an ethcal busness culture. As the Brtsh survey results show, there are some postves to reflect on, but as ever there s room for mprovement. Corporate scandals contnue to ht the headlnes, llustratng that companes need to strve harder to embed ther values so that they become a part of the company culture. I am very grateful to Danel Johnson, the IBE s Research Hub Manager, for hs authorshp of ths and the other sx reports n the 2015 IBE Ethcs at Work Survey seres. Fnally, ths seres of survey reports would not have been possble wthout the fnancal support of a group of the IBE s subscrbers and I thank them all for ther contrbutons: Barclays, Centrca, Lloyds Bankng Group; Avva, HSBC, L Oréal, Orange, RBS, Total; and Arbus. As wth all IBE publcatons we look forward to recevng your feedback and nsght on these survey fndngs. We would encourage you to use the data provded to benchmark the vews of your own employees wth regard to levels of awareness of msconduct, wllngness to rase concerns and perceptons of ethcal culture. Phlppa Foster Back CBE Drector Insttute of Busness Ethcs

8 6 Natonal Revewer s Comment The Insttute of Busness Ethcs (IBE) now has ten years of data derved from ts tr-annual Ethcs at Work surveys. Ths data can be used to track changes n employees vews of what they feel about the way busness n ther organsaton s beng conducted. Because the sample was selected to represent Brtsh employees, some overall conclusons about busness ethcs n Brtan can be deduced. One useful outcome of undertakng the survey s that t enables the IBE to focus ts programme of events, publcatons and advce n a relevant way that s, to focus on those matters whch cause some concern and also to emphasse the postve thngs that Brtsh employees are seeng about corporate ethcs n ther day-to-day work. An example of the concerns expressed through ths survey would be that one n fve of all Brtsh employees say they are aware of msconduct at ther place of work. Indeed, a growng number (now eght out of ten), say ther organsaton provdes a confdental means for ther staff to rase ther concerns. Yet 61% of those who dd rase ther concerns say they were dssatsfed wth what happened after they had done so (t was 30% n 2012). Ths helps to explan why a sgnfcant proporton of employees say that they do not thnk anythng wll be done by management f they decde to rase an ssue. Ths needs addressng. An example of a postve trend revealed n the survey, s that Brtsh organsaton s busness ethcs programmes generally are havng a benefcal effect on employee atttudes. Ths s demonstrated n ths year s survey by the apparent lower levels of awareness of msconduct amongst employees n organsatons whch provde all the elements of an ethcs programme. We at the IBE hear regular comments about the dffcultes beng experenced by ethcs practtoners n makng ther ethcs awareness and tranng programmes effectve among mddle managers. One pece of evdence from ths survey ndcates just how serous ths problem s and hghlghts the need to fnd ways to overcome t. The evdence s ths: n the secton on management behavour as an ndcator of an ethcal culture, t s reported that over a thrd of Brtsh employees say that ther lne manager rewards employees who get good results, even f they use practces that are ethcally questonable (Fgure 17). Another thrd of employees say they are unsure what ther manager does n ths regard! The overrdng ethcal concern among employees n ths survey who were aware of msconduct s the treatment of ther fellow employees unfar or napproprate treatment, bullyng and harassment were cted by just under half of the respondents. On the other hand, perhaps the most encouragng fndng s shown n Fgure 14. All four ndcators of Brtsh employee awareness of ther corporate ethcs programme have rsen sgnfcantly over the last ten years. For example, n 2005, 65% of respondents sad that they were aware of the exstence of a wrtten standard (code of ethcs) n ther organsaton. In 2015, ths proporton has rsen to 86%. Whle havng a code of ethcs s a necessary element of any ethcs programme, t s not suffcent n tself to nfluence behavour. So the acceleraton of the awareness of avalable ethcs tranng from 50% n 2005 to 78% n 2015 s heartenng for those of us who consder good corporate ethcal behavour to be an essental element n sustanable captalsm. Smon Webley Research Drector Insttute of Busness Ethcs

9 7 IBE Ethcs at Work Survey 2015: Brtan Chapter IBE Ethcs at Work Survey: Brtan 7 Survey Key Fndngs from Brtan The data from the 2015 IBE Ethcs at Work Survey n Brtan ndcates that employee experence of busness ethcs n the workplace has remaned relatvely consstent n the last 3 years. However, over the course of ths survey snce 2005 employee atttudes have seen much fluctuaton, whle employer support for ethcs at work has grown postvely. Employees beleve honesty s practsed frequently 81% of Brtsh employees beleve that honesty s practsed always or frequently n ther organsaton. 81% A consstent ffth have been aware of msconduct 20% sad that they were aware of msconduct n 2015 (2012 also 20%)!!!! 20% Pressure to compromse ethcal standards remans low Only 8% of Brtsh employees sad that they had felt pressured to compromse ther organsaton s ethcal standards 8% Around half of employees contnue to speak up 55% of Brtsh employees contnue to rase ther concerns of msconduct (but 45% dd not) 55% Satsfacton wth the outcome of speakng up has plummeted Only 39% sad they were satsfed wth the outcome of rasng ther concerns n In 2012, 70% were satsfed Formal ethcs programmes are more promnent All four elements of a formal ethcs programme are more promnent n 2015 than they have been n the past. 70%! 39% % 84% 73% 78% Change snce 2005 Code of Ethcs Speak Up Lne Advce Lne Ethcs Tranng +21% +32% +26% +28%

10 8 Introducton What are Brtsh employees atttudes to the way busness s done n ther place of work? Do they feel able to speak up when they have wtnessed msconduct? Are formal ethcs programmes effectve n embeddng ethcal values nto organsatonal culture and behavour? Have perceptons changed over tme? The Insttute of Busness Ethcs (IBE) has asked such questons of the Brtsh workforce on a regular bass snce We have, therefore, been able to observe the shftng trends n employee opnon towards busness ethcs n the workplace. Although over ths tme support for ethcs at work has followed a predomnantly postve trend, employee atttudes to, and experence of, ethcs n the workplace has seen greater varaton. In 2012, the scope of the survey was ncreased to nclude four addtonal major European markets France, Span, Italy and Germany, 2 and n 2015 we extended ths work further by ncreasng the number of questons asked n these contnental European markets to contnue the harmonsaton wth the understandng of employee vews n Brtan. Ths report presents the fndngs of the fourth IBE survey of employee vews of ethcs at work n Brtan. Data s presented throughout to gve a snapshot of the busness ethcs landscape n Brtan n Where approprate, we also comment on trends. Comparsons are not made wth the contnental European data as the research methodology and respondent profle dffered for these surveys. 3 The results from the Brtsh, French, German, Italan and Spansh natonal surveys and the comparatve Contnental Europe fndngs are publshed n separate reports, and the overall survey conclusons are presented n a seventh report Ethcs at Work: 2015 Survey of Employees Man Fndngs and Themes. All the survey reports are avalable free to download from the IBE webste. Ethcs at Work: 2015 Survey of Employees Man Fndngs and Themes» Ethcs at Work: 2015 Survey of Employees Brtan» Ethcs at Work: 2015 Survey of Employees Germany» Ethcs at Work: 2015 Survey of Employees France» Ethcs at Work: 2015 Survey of Employees Italy» Ethcs at Work: 2015 Survey of Employees Span» Ethcs at Work: 2015 Survey of Employees Contnental Europe» The ams of ths survey were as follows: 1 The 2005, 2008 and 2012 Employee Vews of Ethcs at Work: Brtsh Survey reports are each avalable, free to download, from the IBE webste. to develop an understandng of Spansh employees atttudes and 2 Employee Vews of Ethcs at Work: 2012 Contnental Europe Survey, avalable, free to download, from the IBE webste. 3 The data for the four contnental European countres was collected onlne by ComRes. The data for the Brtsh report was collected face-to-face by Ipsos MORI. For a comparson of the research methodologes and respondent profles, see the Man Fndngs and Themes report.

11 9 Purpose of the survey The ams of ths survey were as follows: to develop an understandng of Brtsh employees atttudes to, and perceptons of, ethcs n the workplace n 2015 to dentfy trends and developments by, where possble, makng comparsons wth the data from prevous edtons of the IBE Brtsh Ethcs at Work Survey datng back to 2005 to explore f and how an ethcal culture and the exstence of formal ethcs programmes nfluence standards of ethcal behavour n the workplace to assess whether managers atttudes to ethcs are sgnfcantly dfferent to those they manage to enqure f and how employees feel supported n mantanng ethcal standards at work. The questonnare The ntervew questonnare (a copy of whch can be found n Appendx 1) conssted of a total 16 questons, although not all questons were answered by all respondents. Elgblty for certan questons was dependent on responses to prevous questons. The followng areas were explored: employees and managers atttudes to certan ethcal practces n the workplace employee perceptons of ethcal behavour n ther organsaton formal support offered by employers to encourage ethcal behavour n the workplace. A note on the research methodology and respondent profle can be found n Appendx 2. The analyss Ths report detals the fndngs of the responses from the natonally representatve sample of 674 Brtsh workers surveyed by Ipsos MORI on behalf of the IBE n March The analyss s presented n three chapters: Chapter 1 looks brefly at the atttudes to ethcs at work of Brtsh employees and managers Chapter 2 presents a more detaled vew of ther experences of ethcs at work Chapter 3 revews how organsatons support ethcs at work, and assesses the mpact of these varous support mechansms on employee atttudes and experences. Four dfferent sub-groups of the employee populaton were also consdered to see f there were any dfferences n ther experence of ethcs n the workplace. These were: gender (male/female), age (younger employees: aged / mdcareer employees: aged / older employees: aged 55+), sector (publc/voluntary / prvate), and senorty (manager/non-manager). 4 Where percentages do not sum exactly to 100% ths could be due to a number of reasons, ncludng roundng, partcpants beng able to select more than one response to the queston, or addtonal optons, such as don t know or other, not shown. The survey fndngs gve organsatons valuable nsghts and gudance on how to create and sustan a culture of ntegrty. Indvdual organsatons can use the data provded to benchmark ther culture and performance aganst the fndngs presented here. 4 See Appendx 2 for more detal.

12 IBE Ethcs at Work Survey: Brtan Chapter 1 10 Atttudes to Ethcs at Work It s wdely accepted that ethcs begns where the law ends. Consequently, ethcal decsons commonly nhabt what are referred to as grey areas, where the correct course of acton nvarably s not a smple black/whte decson. Dfferences n opnon, upbrngng and experence (to name but a few) mean that ndvduals have dfferent defntons of what may be consdered acceptable. Atttudes to ethcs n the workplace also vary between cultures, ages and over tme. Followng an ce-breaker queston, ths frst chapter outlnes the atttudes of Brtsh employees towards a number of common workplace practces, desgned to act as a barometer of the ethcal senstvty of employees n Brtan. It also asks an addtonal queston of managers n Brtsh organsatons as to ther atttudes towards petty fddlng. Employee atttudes to travel expenses As n prevous years, the ce-breaker queston related to an ethcal dlemma nvolvng clamng travel expenses (Q1). Ths queston was used to test respondent s senstvty to ethcal ssues. Fgure 1 Atttudes towards clamng expenses ( comparson) % 71% 76% 78% Brtsh workers are ncreasngly lkely to select the most ethcal answer 15% 9% 11% 9% Jm should have... n A. Taken the blank recept, clamng % 8% n B. Accepted the recept for 6 n C. Taken publc transport 10% 5% Q1 Jm takes a tax to a busness meetng. At the end of the cab journey whch costs 6 ncludng tp the cab drver offers Jm a recept for 6 or a blank recept. Jm accepts the blank recept, flls t n for 7.50 and clams t on expenses. Whch of the followng reflects your vew of Jm s conduct? A. It s acceptable to take the blank recept and fll t n for 7.50 t s only 1.50 and everyone does t B. Jm should have accepted the recept for 6 and clamed that amount C. Jm should have taken publc transport and saved hs employer the money base (2005, 2008, 2012, 2015) = 759, 791, 655, 674 All Brtsh full-tme workers

13 Chapter 1 11 The majorty of Brtsh employees (84%) selected the most ethcal response, suggestng that Jm should have taken the recept for the correct amount and only clamed for that amount. Ths s a sgnfcant ncrease over prevous versons of the survey 6% up on the 2012 survey. Employee atttudes to ethcs n the workplace The second queston asked respondents to pass judgement on whether or not they thought nne specfc practces were acceptable (Q2). Ths queston was desgned to test further the ethcal senstvty of employees n Great Brtan. Fgure 2 Acceptablty of common workplace practces (2015) most unacceptable frst Chargng personal entertanment to expenses F 8% 92% More than half of Brtsh employees consder all these workplace practces are unacceptable Mnor fddlng of travel expenses H 12% 87% Usng company petrol for personal mleage E 13% 86% Takng a scky G 18% 82% Favourng famly or frends when awardng contracts or recrutng I 17% 82% Postng personal mal from work (e.g. letters or parcels) B 26% 73% Takng pencls and pens from work A 37% 62% Usng the nternet for personal use durng work hours D 38% 61% Makng personal phone calls from work C 44% 56% n Unacceptable n Acceptable Q2 I am gong to read out some thngs whch have happened n workplaces. In whch category would you personally place each one? base = 674 All Brtsh full-tme workers Overall, Brtsh employees have a negatve opnon of each of the practces, wth more than half sayng that they dsagreed wth each of the statements. However, a sgnfcant proporton consder some actons, especally those relatng to conductng personal actvtes durng work hours, to be acceptable. Abuse of expenses, n the form of clamng personal entertanment, mnor fddlng of travel expenses and usng company petrol for personal mleage, are found to be the most unacceptable practces.

14 Chapter 1 12 The atttude of Brtsh employees to some of these practces has changed substantally over the hstory of ths survey. Fgure 3 Changng atttudes toward common workplace practces over tme ( comparson: percentage sayng acceptable) % 44% 31% 25% 17% 11% 4% % 41% 30% 25% 14% 13% 7% % 38% 37% 26% 17% 13% 8% Usng the nternet for personal use, favourng famly or frends and chargng personal entertanment to expenses are all now more acceptable n C Makng personal phone calls from work n A Takng pencls and pens from work n B Postng personal mal from work (e.g. letters or parcel)* n D Usng the nternet for personal use durng work hours** n H Usng company petrol for personal mleage n I Favourng famly or frends when awardng contracts or recrutng n F Chargng personal entertanment to expenses Q2 I am gong to read out some thngs whch have happened n workplaces. In whch category would you personally place each one? base (2008, 2012, 2015) = 791, 655, 674 All Brtsh full-tme workers * B and 2011 queston wordng: Postng personal mal from work ** D and 2011 queston wordng: Usng the nternet for pleasure n work tme Snce 2008, usng the nternet for personal use, favourng famly or frends and chargng personal entertanment to expenses have all ncreased n ther level of acceptablty amongst Brtsh employees. Whereas, makng personal phone calls, takng pens and pencls, postng personal mal and usng company petrol for personal mleage are now consdered to be less acceptable. When sub-groups of the employee populaton are consdered, atttudes to most of these practces are relatvely consstent. However, younger employees are more lenent n ther atttude towards some of these practces (four of nne). Younger employees (aged 16-34) are more lenent n ther atttude towards some of these workplace practces (4/9).

15 Chapter 1 13 Atttudes of managers to petty fddlng The role of managers at all levels s crtcal to the process of embeddng ethcs throughout any organsaton. Lne managers have an essental role n communcatng ethcs messages and actng as role models. Much s wrtten about tone from the top, but the tone n the mddle s as mportant. 5 Ths requres organsatons to go beyond mere complance wth the requrements placed on them by legslaton such as the UK Brbery Act, whch apponts responsblty only wth top management of the organsaton as ts legal representatves. To help ensure that the organsaton s lvng up to ts values, some organsatons explctly place addtonal requrements on those n postons of management responsblty. Ths s most commonly seen n codes of ethcs (or equvalent documents). For example, the expectatons put on managers by BAE Systems are shown n Box 1. Box 1 Company commtment BAE Systems The Company commts that ts leaders, managers and supervsors wll: act wth ntegrty, servng as role models for the hgh standards of conduct expected throughout the Company promote ethcal conduct, both wthn the Company and n the markets n whch we operate provde tranng and other resources so that employees are equpped to deal wth ethcal ssues make sure ths Code s provded to, explaned to and understood by employees they manage and supervse foster an open work envronment n whch employees are encouraged to rase questons or concerns wthout fear of retalaton or retrbuton take acton to address concerns of ethcal msconduct. 46% of the partcpants n ths survey dentfed themselves as havng day-today management responsblty. From responses to the prevous queston (Q2), managers are observed to have a slghtly strcter atttude towards the workplace practces lsted, wth fewer managers fndng a number of the statements (four of nne) to be acceptable than non-managers. To gauge where Brtsh managers draw the lne when t comes to certan unethcal practces n the workplace, ths group of respondents were also asked an addtonal queston where they were requested to say whether or not they agreed wth sx statements related to petty fddlng (Q10). 5 IBE Report (2005) Settng the Tone: ethcal busness leadershp by Phlppa Foster Back. Avalable to purchase from the IBE webste.

16 Chapter 1 14 Fgure 4 Management atttudes to petty fddlng (2015) ranked by proporton sayng dsagree It s acceptable to artfcally ncrease profts n the books as long as no money s stolen There s no real dfference between fraud and a bt of expenses fddlng As long as I come n on tme and wthn budget I am not gong to worry about a bt of petty fddlng Petty fddlng s nevtable n a modern organsaton If we cracked down on every lttle fddle we would soon fnd we had no staff and probably no supplers as well E D C A B 7% 18% 24% n Dsagree 19% 32% 30% 52% 51% 64% 64% 53% n Agree 84% Brtsh managers generally agree that petty fddlng s unacceptable Q10 To what extent do you agree or dsagree wth the followng? base = 310 All Brtsh workers wth management responsblty for one or more persons More than half of all managers dsagree wth each of these statements, suggestng that managers generally agree that petty fddlng of any knd s unacceptable. There s, however, consderable varaton n ther atttudes towards these statements. Whlst the majorty (84%) dsagree that t s acceptable to artfcally ncrease profts n the books as long as no money s stolen, only approxmately half (52%) dsagree that petty fddlng s nevtable. Vews on whether there s a dfference between fraud and a bt of expenses fddlng s the only ssue for whch atttudes have changed on ths topc over the hstory of the survey. In 2015, Brtsh managers are more lkely than n prevous surveys to dsagree wth ths statement. There are no notable dfferences between sub-groups of the management populaton.

17 IBE Ethcs at Work Survey: Brtan Chapter 2 15 Experence of Ethcs at Work The prevous secton assessed employee and management atttudes to a varety of ethcal ssues. However, employee ntentons are not always necessarly matched by ther actons when t comes to dealng wth ethcal ssues n the workplace. Ths chapter reports on employee experences of ethcs at work, gvng nsghts nto employees actual behavour, as opposed to ntentons, when confronted wth ethcal ssues n ther day-to-day workng lves. Honesty n the workplace The IBE defnes busness ethcs as the applcaton of ethcal values to busness behavour. One such ethcal value s honesty. Honesty s a trat whch s valued by organsatons, and s often a stated core value 6. In practce, t s also nstantly recognsable. As such, t can be used as a proxy for busness ethcs or busness ntegrty. 7 Respondents to the survey were asked for ther percepton of how frequently honesty s practsed n ther organsaton s daly operatons (Q3). Four-ffths of Brtsh employees stll say that honesty s practsed always or frequently Fgure 5 Employee vews of how frequently honesty s practsed? (2015) Always/Frequently Occasonally Rarely/Never 81% 12% 5% Q3 In your organsaton s daly operatons, would you say that honesty s practsed...? base = 674 All Brtsh full-tme workers Women (87%) are more lkely than men (78%) to say that honesty s practsed always or frequently n ther organsaton s daly operatons. Consstent wth the fndngs of prevous surveys, around four-ffths of Brtsh employees (81%) thnk that honesty s practsed always or frequently n ther organsaton. The proporton who say that honesty s practsed always or frequently n ther organsaton rses to a peak of 90% amongst employees n organsatons wth the most supportve organsatonal cultures Accordng to Forgng Values, Integrty (ethcs/honesty) s one of the 17 common shared values of Fortune 500 companes In a 2012 ICAEW report Real Integrty: practcal solutons for organsatons seekng to promote and encourage ntegrty, attempts to defne busness ntegrty were frequently grounded n the theme of honesty. 8 As defned n fn A response rate of 92% was recorded amongst employees n the thrd sector, but ths was from only 10 respondents. Younger employees (aged 16-34) (16%) are more lkely than md-career employees (aged 35-54) (8%) to say that honesty s only practsed occasonally.

18 Chapter 2 16 There are also a number of statstcally sgnfcant dfferences n opnons between sub-groups of the employee populaton. Women are more lkely to say that honesty s practsed always/frequently than men, and younger employees are more lkely to say that honesty s only practsed occasonally than md-career employees.!!!! Awareness of msconduct Respondents were asked about ther awareness of actual msconduct (defned as behavour by ther employer or colleagues, whch they thought volated ether the law or the organsaton s ethcal standards) over the prevous year (Q4a). Fgure 6 Employee awareness of msconduct (2015) A ffth of Brtsh employees have consstently been aware of msconduct 79% 12% 17% 20% 71% Yes Q4a Durng the past year at work, have you been aware of any conduct by your employer or colleagues that you thought volated ether the law or your organsaton s ethcal standards? base = 674 All Brtsh full-tme workers No A ffth of Brtsh employees sad that they had been aware of msconduct durng the past year. Ths level of awareness of msconduct has been consstent snce ths queston was frst asked n It s also relatvely consstent amongst subgroups of the employee populaton. However, more than half of employees n organsatons wth unsupportve ethcal cultures (57%) say that they have been aware of msconduct. Predomnant types of msconduct Those Brtsh employees who sad that they were aware of msconduct were also asked detals about the types of msconduct of whch they were aware (Q4b) 10. These respondents ndcated that, on average, they were aware of approxmately 2.5 types of msconduct each. 10 Partcpants were asked to select responses from a lst of commonly observed types of msconduct. They were not lmted n the number of optons they could select, and an other (please specfy) opton was also gven.

19 Chapter 2 17 Fgure 7 Types of msconduct of whch employees were aware (2015) People treated napproprately/ unethcally/unfarly Bullyng/harassment Safety volatons Stealng Abusve behavour Dscrmnaton Msreportng hours worked H C E A D B 21% 28% 26% 26% 25% 42% 46% People treated napproprately, unethcally or unfarly s the most commonly observed type of msconduct Improper hrng practces Fraud F G 16% 19% Q4b Whch, f any, of the followng types of msconduct were you aware of? base = 134 All Brtsh full-tme workers aware of unethcal conduct The three most commonly reported types of msconduct were revealed to be: (1) people treated napproprately, unethcally or unfarly, (2) bullyng/ harassment, and (3) safety volatons. Older employees (aged 55+) and senor managers (those wth 11 or more drect reports) were the only exceptons to the observaton that the unethcal treatment of people was the most reported type of msconduct. For these two sub-groups, bullyng/harassment was the type of msconduct of whch they were most frequently aware. The mpact of beng aware of msconduct The responses of those who sad that they had been aware of msconduct were compared wth the overall responses. The fndngs reveal that Brtsh employees who have been aware of msconduct are: For Older employees (aged 55+) bullyng/ harassment and safety volatons were the types of msconduct of whch they were most aware. more lkely to say that honesty s practsed rarely n ther organsaton less lkely to agree wth each of the ndcators of a postve ethcal culture n queston 6, suggestng they have a less favourable percepton of the culture of ther organsaton more lkely to have felt pressured to compromse ther organsaton s ethcal standards.

20 Chapter 2 18 Speakng up Most large global companes now provde mechansms for ther employees to rase, or speak up about, ther concerns relatng to msconduct n ther workplace. Accordng to separate IBE research conducted n 2013, havng a speak up lne (or whstleblowng lne) s consdered to be one of the man elements of a company ethcs programme by more than four-ffths (86%) of FTSE350 respondent companes. 11 Speak up lnes are also consdered to be an element of good governance, and can act as an early warnng system for an organsaton seekng to understand the ssues whch are beng faced by ts employees. 12 Around half of Brtsh employees rased ther concerns relatng to msconduct Respondents to ths survey who sad that they had been aware of msconduct were also asked whether they spoke up about ther concerns (Q4c). Fgure 8 Employees rasng concerns about msconduct (2015) No 45% 12% 17% 71% 55% Yes Q4c Dd you rase any of your concerns wth management, another approprate person, or through any other mechansm? base = 134 All Brtsh full-tme workers aware of unethcal conduct Smlar to prevous years, whle around half of employees rased ther concerns wth management, another approprate person, or through any other mechansm, just under half chose not to address the stuaton. Reasons for not speakng up Those respondents who sad they had not rased ther concerns about msconduct were asked an addtonal queston to dscover what they consdered are the barrers to speakng up (Q4e). 13 The most promnent reasons gven why Brtsh employees dd not rase ther concerns of msconduct n 2015 are: (1) feelng that t may jeopardse ther job, (2) not belevng that correctve acton would be taken, and (3) thnkng that they would be seen as a troublemaker by management. No respondents sad that they dd not know who to contact. Feelng that t mght jeopardse ther job was the man reason Brtsh employees dd not rase ther concerns 11 IBE Survey Corporate Ethcs Polces and Programmes: 2013 UK and Contnental European Survey. Avalable for free download from the IBE webste. 12 IBE Brefng (No 36) Speak Up. Avalable for free download from the IBE webste. 13 Partcpants were asked to select responses from a lst of commonly cted reasons for not rasng concerns about msconduct. They were not lmted n the number of optons they could select, and an other (please specfy) and a don t know opton were also gven.

21 Chapter 2 19 Fgure 9 Reasons why concerns were not rased (2015) I felt I mght jeopardse my job B 30% I dd not beleve correctve acton would be taken C I felt I would be seen as a troublemaker E by management I felt t was none of my busness A 15% 17% 24% I thought that they already knew about t It had already been reported/dealt wth I felt I mght alenate myself from colleagues I K D 11% 13% 13% I thought that t was common practce G I thought that t would be rased by H someone else I dd not thnk t was a serous ssue at the tme J 5% 8% 10% I dd not know who to contact F 0% Q4e Whch, f any, of the followng nfluenced your decson NOT to rase your concerns? base = 60 All Brtsh full-tme workers who dd not rase concerns of unethcal conduct (cauton small base sze) There were, however, substantal varatons between sub-groups of employees, and not one sub-group reported the reasons they dd not rase ther concerns n the same order as the overall fndngs. Feelng that dong so mght jeopardse ther job was the most promnent ssue for most sub-groups, wth the exceptons of older employees and those workng n the publc sector. For each of these groups the belef that correctve acton would not be taken was the most commonly reported reason for not rasng ther concerns. There were notable dfferences n the top three reasons for not speakng up between employees n the prvate and publc sectors (shown n Table 1). Table 1 Reasons why concerns were not rased: dfferences between publc and prvate sector employees Prvate sector I felt I mght jeopardse my job (29%) I felt t was none of my busness (19%) It had already been reported/dealt wth (16%) Publc sector I dd not beleve correctve acton would be taken (51%) I felt I mght jeopardse my job (32%) I felt I would be seen as a troublemaker by management (30%)

22 Chapter 2 20 Satsfacton wth the outcome of speakng up Those respondents who sad they dd speak up were asked about ther experence and whether they were satsfed wth the outcome (Q4d). Fgure 10 Employee satsfacton wth the outcome of speakng up ( comparson) Yes 55% 70% Yes 39% Satsfacton wth the outcome of rasng a concern has declned by almost half No 30% No 61% Q4d Were you satsfed wth the outcome? base (2012, 2015) = 63, 73 All Brtsh full-tme workers rasng concerns of unethcal conduct (cauton small base sze) In stark contrast to when ths queston was frst asked n 2012, the majorty of respondents are now not satsfed wth the outcome when they rase ther concerns of msconduct. Ths fndng renforces the promnence wth whch the belef that no correctve acton would be taken s found to be a barrer to Brtsh employees rasng ther concerns of msconduct. Ths appears especally to be the case for women, younger employees, and employees n organsatons wth an unsupportve ethcal culture where 71%, 79% and 97% respectvely sad that they were not satsfed wth the outcome. Conversely, nearly three-quarters of Brtsh employees n organsatons wth the most supportve ethcal cultures (74%) sad that they were satsfed wth the outcome. Pressure to compromse organsatonal standards As n prevous edtons of the survey, all respondents were asked whether they had felt pressured to compromse ther organsaton s standards of ethcal conduct (Q7a). As before, less than one n ten employees (8%) have felt pressured to compromse ther organsaton s standards of ethcal conduct n Ths does, however, rse to almost a thrd of employees n organsatons wth unsupportve ethcal cultures (32%). Less than one n ten employees n Brtan have consstently felt pressured to compromse standards

23 Chapter 2 21 Fgure 11 Proporton who have felt pressure to compromse ethcal standards (2015) 8% 12% 17% Yes Q7a Have you felt pressured to compromse your current organsaton s standards of ethcal conduct? base = 674 All Brtsh full-tme workers No 92% Over the hstory of the survey there has also been a sgnfcant ncrease n the number of Brtsh employees who sad they have not felt pressured to compromse ther organsaton s standards of ethcal conduct, rsng from 85% n 2008 to 92% n Ths fndng contrasts somewhat wth smlar research conducted by the Chartered Global Management Accountant (CGMA, 2015), whch showed that, between 2012 and 2015, the proporton of professonal management accountants n the UK who sad that they had felt pressure from colleagues or managers to compromse ther organsaton s standards of ethcal busness conduct rose from 18% to 30%. 15 Ths suggests that pressure to compromse organsatonal standards can be more promnent n certan professons. Predomnant sources of pressure The small proporton who sad that they had felt pressure to compromse ther organsaton s ethcal standards were asked for the detals of the types of pressures they had been aware of (Q7b). 16 The three predomnant pressures faced by Brtsh employees n 2015 are: (1) tme pressures, (2=) followng the boss s orders, and beng under-resourced. Tme s the most reported type of pressure for Brtsh employees 14 In 2015 the queston wordng changed slghtly from 2008 and 2012 when the queston was: Have you felt pressured to compromse your organsaton s standards of ethcal conduct? In 2008 there were 791 responses to ths queston. 15 A total of 2,498 responses were collected among CGMA desgnaton holders and CIMA students workng n busness globally. Of these, 9% from based n the UK (223 responses), Managng Responsble Busness 2015 Edton (CGMA, 2015). 16 Partcpants were asked to select a maxmum of three responses from a lst of common pressures to compromse organsatonal ethcal standards. An other (please specfy) and a don t know opton were also gven.

24 Chapter 2 22 Fgure 12 Sources of pressure to compromse ethcal standards (2015) I felt tme pressure J 32% I was followng my boss s orders B 30% We were under-resourced I had to meet unrealstc busness objectves/deadlnes I A 30% 26% I was beng asked to take shortcuts There were fnancal/budgetng pressures at the company G H 18% 24% I felt peer pressure to be a team player I wanted to help the organsaton perform better (e.g. aganst compettors or spendng cutbacks) C D 11% 16% I was tryng to save my job E 8% My organsaton has an unethcal culture F 1% Q7b Whch, f any, of the followng made you feel pressured? base = 53 All Brtsh full-tme workers who have felt pressure to compromse ther current organsaton s standards of ethcal conduct (cauton small base sze) When the pressures are consdered by sub-group, agan, no sub-groups of employees reported the pressures n the same order as when consdered overall. Notable dfferences are observed between men and women, youngest and md-career employees, and those n the prvate and publc sectors (as shown n Table 2). Table 2 Sources of pressure: dfferences between employee sub-groups Male I felt tme pressure (36%) We were under-resourced (30%) I had to meet unrealstc busness objectves or deadlnes (28%) Female I was followng my boss s orders (41%) There were fnancal/budgetng pressures at the company (32%) We were under-resourced (30%) I was followng my boss s orders (49%) We were under-resourced (39%) I had to meet unrealstc busness There were fnancal/budgetng objectves or deadlnes (48%) pressures at the company (28%) I felt tme pressure (36%) I felt tme pressure (27%)

25 Chapter 2 23 Table 2 contnued Prvate Sector I felt tme pressure (33%) I was followng my boss s orders (32%) Publc Sector I had to meet unrealstc busness objectves or deadlnes (65%) We were under-resourced (38%) We were under-resourced (27%) I was beng asked to take I felt tme pressure (29%) shortcuts (27%)

26 IBE Ethcs at Work Survey: Brtan Chapter 3 24 Supportng Ethcs at Work Ths secton of the report takes a look at how organsatons support ethcs at work. Partcpants were asked about whether ther organsaton offers support for employees on ethcal matters, through four common elements of a formal ethcs programme. They were also asked f ther organsaton provdes ncentves to encourage ethcal behavour n the workplace, and f so, whch types of ncentves were used. Further testng was also done on a number of ndcators of ethcal culture. Ethcs programmes Brtsh respondents were asked about whether ther organsaton offers support for employees on ethcal matters, through any or all of four elements of a formal ethcs programme a code of ethcs (A. wrtten standards of ethcal busness conduct); a speak up lne (B. a means of reportng msconduct confdentally); advce or nformaton helplne (C.); and ethcs tranng (D. tranng on standards of ethcal conduct). Almost two thrds of respondents (64%) ndcated that ther organsaton offers all four of these formal measures of support. Almost all (93%) sad that ther organsaton offered at least one of these, and very few (7%) sad that ther organsaton offered none. The majorty of Brtsh employees are aware that ther organsatons have each of the elements of a formal ethcs programme n place, and wrtten standards of ethcal busness conduct, such as a code of ethcs or polcy statement on ethcs, are the most prevalent. The majorty of Brtsh employees say ther organsatons have each of the elements of a formal ethcs programme n place Fgure 13 Employee awareness of elements of formal ethcs programme (2015) A. Wrtten standards B. A means of reportng msconduct confdentally Yes 86% Yes 84% No 13% No 15%

27 Chapter 3 25 Fgure 13 (contnued) C. Advce or nformaton helplne D. Tranng on ethcal standards Yes 55% 73% Yes 78% No 25% No 21% Q5 The next few questons relate to the level to whch your organsaton provdes nformaton and assstance wth regard to actng ethcally. Smply answer yes or no. A. My organsaton has wrtten standards of ethcal busness conduct that provde gudelnes for my job (for example a code of ethcs, a polcy statement on ethcs or gudance on proper busness conduct) B. My organsaton provdes employees wth a means of reportng msconduct confdentally, wthout gvng ther name or other nformaton that could easly dentfy them C. My organsaton offers advce or an nformaton helplne where I can get advce about behavng ethcally at work D. My organsaton provdes tranng on standards of ethcal conduct base = 674 All Brtsh full-tme workers When the sub-groups of the Brtsh employee populaton are consdered, dfferences n levels of awareness are seen between those of dfferent ages, and those n the publc and prvate sectors. Employees n the publc sector are more lkely than employees n the prvate sector to say that ther organsaton offers each of these elements of a formal ethcs programme. Table 3 Publc sector employees are more lkely to say ther organsaton offers the elements of a formal ethcs programme Wrtten standards 94% 82% A means of reportng msconduct confdentally 90% 81% Advce or nformaton helplne 83% 69% Tranng on ethcal standards 84% 76% Publc Sector Prvate Sector

28 Chapter 3 26 Conversely, older employees (55+) are less lkely to say that ther organsaton offers wrtten standards, a means of reportng msconduct confdentally or tranng on ethcal standards than md-career or younger employees. Table 4 Older employees (aged 55+) are less lkely to thnk ther organsaton offers elements of a formal ethcs programme Wrtten standards 78% 89% 84% * A means of reportng msconduct confdentally 75% 84% * 86% Tranng on ethcal standards 65% 79% 81% *Not a statstcally sgnfcant dfference. Older employees Md-career employees Younger employees When looked at over the hstory of the survey, we see a consstent rse n the proporton of organsatons that have each of these elements n place, wth a sgnfcant ncrease reported for each of the statements between 2012 and Fgure 14 Changes n employee awareness of elements of a formal ethcs programme ( comparson) n A Wrtten standards n B A means of reportng msconduct confdentally n C Advce or nformaton helplne n D Tranng on standards of ethcal conduct 65% 66% 73% 69% 86% 84% 78% 73% In 2015, organsatons are sgnfcantly more lkely to provde each element of a formal ethcs programme 62% 55% 58% 52% 50% 47% 49% 54% base (2005, 2008, 2012, 2015) = 759, 791, 665, 674 All Brtsh full-tme workers

29 Chapter 3 27 The mpact of provdng formal support for ethcs n the workplace Usng the responses to queston 5, we are able to assess the mpact of provdng formal support to employees. Responses to all questons were compared dependng on whether respondents ndcated that ther organsaton offered all, any or none of these optons. The fndngs show that, when compared to employees n organsatons whch offer none of the mechansms of formal support, Brtsh employees who work n organsatons whch provde all elements of a formal ethcs programme, are more lkely to: say that honesty s practsed always n ther organsaton have not been aware of msconduct over the past year agree wth each of the postve ndcators of ethcal culture, suggestng they have a more favourable vew of ther organsaton s culture. Use of ncentves to encourage ethcal behavour n the workplace Another formal element of support for ethcs n the workplace s the provson of ncentves. For the frst tme n 2015, all respondents to the Brtsh survey were also asked whether or not ther organsaton provded ncentves to employees to encourage them to lve up to the organsaton s ethcal standards (Q8a). 17 Fgure 15 Employee awareness of ncentves to lve up to ethcal standards (2015) Only a quarter of Brtsh employees say ther organsaton offers ncentves 26% Yes Q8a Does your organsaton provde ncentves to employees to encourage them to lve up to the organsaton s ethcal standards? base = 674 All Brtsh full-tme workers No 72% Only a quarter of organsatons (26%) offer ncentves to employees to encourage them to lve up to ther organsaton s ethcal standards. Lookng at the fndngs by sub-group reveals that ncentves appear to be sgnfcantly more common amongst prvate sector employees than those n the publc sector. Prvate sector employees (30%) are more lkely to say that ther organsaton offers ncentves than those n the publc sector (19%). 17 In 2012, only managers were asked to respond to ths queston.

30 Chapter 3 28 Types of ncentve used Those Brtsh respondents who ndcated that ther organsaton does offer ncentves to encourage ethcal behavour were also asked for addtonal nformaton regardng the types of ncentves offered (Q8b). Fgure 16 Promnence of types of ncentves (2015) Part of our annual apprasal/revew Assessng bonus payments Publc commendaton 27% 26% 55% Incluson n the annual apprasal s the most common method of ncentvsng ethcal behavour n Brtan Salary ncreases 16% Q8b Whch, f any, of the followng ncentves does your organsaton provde to encourage employees to lve up to ts ethcal standards? base = 186 All Brtsh full-tme workers whose organsaton offers ncentves Amongst Brtsh employees, the most commonly utlsed ncentve s ncludng ethcal consderatons as part of the annual apprasal/revew. The least common s salary ncreases. Publc commendaton s used by only a quarter of companes whch do offer ncentves. The mpact of usng ncentves to encourage ethcal behavour n the workplace Usng the responses to queston 8a, we are able to assess the mpact of ncentvsng ethcal practces n the workplace. Responses to all questons were compared dependng on whether respondents answered yes or no to ths queston. The fndngs reveal that, n Brtan, provdng ncentves to employees does not have much of an mpact on ther atttudes towards ethcs at work. However, employees n organsatons whch provde ncentves are more lkely to agree wth each of the ndcators of ethcal culture, suggestng that they have a more favourable opnon of the ethcal culture of ther organsaton. Indcators of an ethcal culture Respondents to the Brtsh survey were also asked about ther opnon on a number of statements related to practces whch can be consdered as ndcators of an ethcal culture (Q6). The statements can be categorsed nto the four areas of: management behavour (A. My manager sets a good example, C. My manager rewards good results even f they are acheved usng practces that are ethcally questonable, and D. My manager supports me n followng my organsaton s standards of ethcal behavour)

31 Chapter 3 29 communcaton of ethcal standards (B. My manager explans the mportance of honesty and ethcs n the work we do, and H. Issues of rght and wrong are dscussed n staff meetngs) responsble busness conduct (F. My organsaton acts responsbly n all ts busness dealngs, and G. My organsaton lves up to ts stated polcy of socal responsblty), and enforcement of ethcal standards (E. My organsaton dscplnes employees who volate ts ethcal standards). Usng respondent answers to each of these statements, we are able to dentfy whether respondents consder there to be ether a supportve or unsupportve organsatonal culture n ther place of work. Of the 674 respondents, almost half (45%) work n organsatons wth the most supportve ethcal cultures, two-thrds (66%) work n organsatons wth farly supportve ethcal cultures, and less than one n ten (9%) work n organsatons wth unsupportve ethcal cultures. 18 Management behavour Fgure 17 Perceptons of management behavour (2015) A. My manager sets a good example Dsagree 7% Nether agree nor 20% dsagree Agree C. My manager rewards good results, even f ethcally questonable practces are used Dsagree 36% 71% 36% Agree Q6 To what extent do you agree or dsagree wth the followng statements? A. Overall, my lne manager sets a good example of ethcal busness behavour C. My lne manager rewards employees who get good results, even f they use practces that are ethcally questonable base = 674 All Brtsh full-tme workers Generally, Brtsh managers are consdered to be supportve of ethcal behavour 28% Nether agree nor dsagree 18 Organsatons wth the most supportve ethcal cultures are defned as those n whch respondents answered ether strongly agree or tend to agree to each of these statements (excludng Statement C whch s framed n the negatve). Organsatons wth farly supportve ethcal cultures are those n whch respondents agreed wth fve or more statements (excludng Statement C). Organsatons wth unsupportve ethcal cultures are those n whch respondents answered tend to dsagree or strongly dsagree to three or more statements (excludng Statement C).

32 Chapter 3 30 Fgure 17 (contnued) D. My manager supports me n followng standards of ethcal behavour Nether agree nor dsagree Dsagree 22% 8% 69% Agree Q6 To what extent do you agree or dsagree wth the followng statements? D. My lne manager supports me n followng my organsaton s standards of ethcal behavour base = 674 All Brtsh full-tme workers Generally, Brtsh employees consder ther lne manager to be supportve of ethcal behavour, wth approxmately seven n ten agreeng that ther manager sets a good example and supports them n followng ther organsaton s standards of ethcal behavour. However, n an apparent contradcton, more than a thrd (36%) also agree that ther lne manager rewards employees who get good results, even f they use practces that are ethcally questonable. Ths would seem to suggest that n the vew of Brtsh employees there s a gap between what managers say and what they do. Ths s explored n more detal n the Man Fndngs and Themes report. Communcaton of ethcal standards Fgure 18 Perceptons of communcaton of ethcal standards (2015) B. My manager explans the mportance of honesty and ethcs Nether agree nor dsagree Dsagree 21% 9% 69% Agree H. Issues of rght and wrong are dscussed n staff meetngs Dsagree Nether agree nor dsagree 22% 11% 65% Agree More than twothrds of Brtsh employees say ethcs s communcated well n ther organsaton Q6 To what extent do you agree or dsagree wth the followng statements? B. My lne manager explans the mportance of honesty and ethcs n the work we do H. Issues of rght and wrong are dscussed n staff meetngs base = 674 All Brtsh full-tme workers More than two thrds of Brtsh employees agree wth both of these statements suggestng that ethcs s communcated well n ther organsaton.

33 Chapter 3 31 Responsble busness conduct Fgure 19 Perceptons of responsble busness conduct (2015) F. My organsaton acts responsbly n all busness dealngs Dsagree Nether 7% agree nor 15% dsagree G. My organsaton lves up to ts polcy of socal responsblty Dsagree Nether 4% agree nor 19% dsagree More than three-quarters of Brtsh employees agree that ther organsaton s responsble 78% Agree 76% Agree Q6 To what extent do you agree or dsagree wth the followng statements? F. My organsaton acts responsbly n all ts busness dealngs (wth customers, clents, supplers, etc.) G. My organsaton lves up to ts stated polcy f socal responsblty base = 674 All Brtsh full-tme workers Perceptons of responsble busness conduct amongst Brtsh employees s hgh, wth more than three-quarters agreeng that ther organsaton acts responsbly n all ts busness dealngs and that t lves up to ts stated polcy of socal responsblty. Enforcement of ethcal standards Fgure 20 Perceptons of enforcement of ethcal standards (2015) E. Organsaton dscplnes employees who volate ethcal standards Dsagree 8% Nether agree nor 19% dsagree 72% Agree Q6 To what extent do you agree or dsagree wth the followng statements? E. My organsaton dscplnes employees who volate my organsaton s ethcal standards base = 674 All Brtsh full-tme workers Almost threequarters of Brtsh employees say ther organsaton enforces ethcal standards Fnally, almost three-quarters of Brtsh employees also agree ther organsaton acts on ethcal lapses by dscplnng employees who volate ethcal standards. Opnons on most of these ndcators of ethcal culture have generally remaned consstent over the hstory of ths survey. However, agreement wth three of these statements has ncreased over tme. These are: my lne manager explans the mportance of honesty and ethcs n the work we do; my manager rewards employees who get good results, even f they use practces that are ethcally questonable; and ssues of rght and wrong are dscussed n staff meetngs (see Fgure 21).

34 Chapter 3 32 Fgure 21 Changes n percepton of ndcators of an ethcal culture ( comparson) % 60% % 63% % 65% Agreement wth some ndcators of ethcal culture has ncreased n Brtan snce % 24% 26% n B My manager explans the mportance of honesty and ethcs n C My manager rewards practces that are ethcally questonable n H Issues of rght and wrong are dscussed n staff meetngs base ((2008, 2012, 2015) = 791, 665, 674 All Brtsh full-tme workers The rate of agreement that lne managers explan the mportance of honesty and ethcs, and that they reward employees who get good results even f they use practces that are ethcally questonable, both rose sgnfcantly between 2012 and For ssues of rght and wrong beng dscussed n team meetngs, the sgnfcant ncrease was between the 2008 and 2012 versons of the survey, and the 2015 results are consstent wth the 2012 ones. The ten percentage pont rse n the proporton of managers who apparently turn a blnd eye to ethcally questonable behavour f t means good results are acheved, s somewhat nconsstent wth the ncreased proporton who also say that ther lne manager explans the mportance of honesty and ethcs n the work they do. The mpact of workng for an organsaton wth a supportve ethcal culture Usng the responses to queston 6, we are able to assess the mpact of workng for a supportve employer. Responses to all questons were compared dependng on whether respondents ndcated that ther organsaton was the most supportve, farly supportve or unsupportve. The fndngs show that Brtsh employees who work n organsatons wth the most supportve ethcal cultures are: more lkely to say that honesty s practsed always n ther organsaton less lkely to have been aware of msconduct over the past year less lkely to have felt pressured to compromse ther organsaton s ethcal standards.

35 Summary and Concluson 33 Summary and Concluson Ths fourth IBE Brtsh Ethcs at Work report has explored the atttudes and perceptons of Brtsh employees of ethcal standards and behavours n ther workplace. The results n ths report provde nsght nto the state of busness ethcs n Brtsh organsatons n It has also shown how the vew of Brtsh employees towards ethcs n the workplace has shfted over tme. The fndngs show that between 2012 and 2015 there has not been a sgnfcant shft n the experences of Brtsh employees of ethcs at work: the practce of honesty s stll consdered to be prevalent wth more than four-ffths of employees sayng that honesty s practsed always or frequently n ther organsaton a consstent ffth say that they had been aware of msconduct over the prevous year only half of employees aware of msconduct contnue to rase ther concerns, and only 8% say that they had felt pressured to compromse ther organsaton s ethcal standards. However, each of the elements of a formal ethcs programme s now more promnent than three years ago: almost nne n ten say that ther organsaton has wrtten standards of ethcal busness conduct, up from slghtly less than three-quarters n 2012 a smlar proporton say ther organsaton offers a means of reportng msconduct confdentally, up from slghtly more than two-thrds n 2012 nearly three-quarters say ther organsaton has an advce or nformaton helplne, up from approxmately sx n ten n 2012 almost four-ffths say ther organsaton provdes ethcs tranng, up from less than two-thrds n In 2015, ethcs programmes now appear to be well establshed, and are becomng more embedded n organsatons as ther awareness amongst employees has ncreased substantally. However, n a reversal of prevous fndngs, fewer than two-ffths (39%) are now satsfed wth the outcome when they rase ther concerns of msconduct. In 2012, 70% were satsfed. Ths s consstent wth the fndng that not belevng correctve acton would be taken was the second most promnent barrer to employees rasng concerns. The fndng that almost three-quarters of employees n organsatons wth the most supportve ethcal cultures sad that they were satsfed wth the outcome when they spoke up, does however suggest that ndvdual organsatons have a degree of control over ths. There s also evdence to suggest the benefts of formally supportng employees to do the rght thng. Organsatons whch take ethcs serously by provdng support to employees through formal ethcs programmes and/or a supportve ethcal culture experence: honesty more frequently n ther day-to-day operatons, msconduct less frequently, and less pressure on employees to compromse ther standards of ethcal conduct.

36 Appendx 1 34 Appendx 1 Survey Questonnare Q1. Jm takes a tax to a busness meetng. At the end of the cab journey whch costs 6 ncludng tp the cab drver offers Jm a recept for 6 or a blank recept. Jm accepts the blank recept, flls t n for 7.50 and clams t on expenses. Whch of the followng reflects your vew of Jm s conduct? It s acceptable to take the blank recept and fll t n for 7.50 t s only 1.50 and everyone does t Jm should have accepted the recept for 6 and clamed that amount Jm should have taken publc transport and saved hs employer the money No opnon Q2. I am gong to read out some thngs whch have happened n workplaces. In whch category would you personally place each one? Totally acceptable Farly acceptable Not very acceptable Totally unacceptable Don t know A. Takng pencls and pens from work B. Postng personal mal from work (e.g. letters or parcels) C. Makng personal phone calls from work D. Usng the nternet for personal use durng work hours E. Usng company petrol for personal mleage F. Chargng personal entertanment to expenses G. Takng a scky H. Mnor fddlng of travel expenses I. Favourng famly or frends when awardng contracts or recrutng Q3. In your organsaton s daly operatons, would you say that honesty s practsed? Always Frequently Occasonally Rarely Never Don t know

37 Appendx 1 35 Q4a. Durng the past year at work, have you been aware of any conduct by your employer or colleagues that you thought volated ether the law or your organsaton s ethcal standards? Yes go to Q4b No go to Q5 Don t know go to Q5 Q4b. [ONLY THOSE WHO ANSWERED YES TO Q4a] Whch, f any, of the followng types of msconduct were you aware of? Tck all that apply. READ OUT A. Abusve behavour B. Msreportng hours worked C. Safety volatons D. Dscrmnaton (Please specfy) E. Stealng F. Improper hrng practces (e.g. favourng famly or frends) G. Fraud H. Bullyng/harassment I. People treated napproprately/unethcally/unfarly J. Other (Please wrte n) K. Prefer not to say Q4c. [ONLY THOSE WHO ANSWERED YES TO Q4a] Dd you rase any of your concerns wth management, another approprate person, or through any other? Yes go to Q4d No ask Q4e Don t know go to Q5 Q4d. [ONLY THOSE WHO ANSWERED YES TO Q4c] Were you satsfed wth the outcome? Yes No Don t know Q4e. [ONLY THOSE WHO ANSWERED NO TO Q4c] Whch, f any, of the followng nfluenced your decson not to rase your concerns? [Please select all that apply] READ OUT A. I felt t was none of my busness B. I felt I mght jeopardse my job C. I dd not beleve that correctve acton would be taken D. I felt I mght alenate myself from colleagues E. I felt I would be seen as a troublemaker by management F. I dd not know who to contact G. I thought that t was common practce H. I thought t would be rased by someone else I. I thought that they already knew about t J. I ddn t thnk t was a serous ssue at the tme K. Other (Please specfy) L. Don t know/prefer not to say

38 Appendx 1 36 Q5. The next few questons relate to the level to whch your organsaton provdes nformaton and assstance wth regard to actng ethcally. Smply answer yes or no. A. My organsaton has wrtten standards of ethcal busness conduct that provde gudelnes for my job (for example a code of ethcs, a polcy statement on ethcs or gudance on proper busness conduct) B. My organsaton provdes employees wth a means of reportng msconduct confdentally, wthout gvng ther name or other nformaton that could easly dentfy them C. My organsaton offers advce or an nformaton helplne where I can get advce about behavng ethcally at work Yes No Don t know D. My organsaton provdes tranng on standards of ethcal conduct Q6. To what extent do you agree or dsagree wth each of the followng statements? Strongly agree Tend to agree Nether agree nor dsagree Tend to dsagree Strongly dsagree Don t know/not applcable A. Overall, my lne manager sets a good example of ethcal busness behavour B. My lne manager explans the mportance of honesty and ethcs n the work we do C. My lne manager rewards employees who get good results, even f they use practces that are ethcally questonable D. My lne manager supports me n followng my organsaton s standards of ethcal behavour E. My organsaton dscplnes employees who volate my organsaton s ethcal standards F. My organsaton acts responsbly n all ts busness dealngs (wth customers, clents, supplers, etc.) G. My organsaton lves up to ts stated polcy of socal responsblty H. Issues of rght and wrong are dscussed n staff meetngs

39 Appendx 1 37 Q7a. Have you felt pressured to compromse your current organsaton s standards of ethcal conduct? Yes go to Q7b No go to Q8 Don t know/prefer not to say go to Q8 Q7b. [ONLY THOSE WHO ANSWERED YES TO Q7a] Whch, f any, of the followng made you feel pressured? Maxmum three responses. READ OUT A. I had to meet unrealstc busness objectves or deadlnes B. I was followng my boss s orders C. I felt peer pressure to be a team player D. I wanted to help the organsaton perform better (e.g. aganst compettors or spendng cutbacks) E. I was tryng to save my job F. My organsaton has an unethcal culture G. I was beng asked to take shortcuts H. There were fnancal / budgetng pressures at the company I. We were under-resourced J. I felt tme pressure K. Other (Please specfy) L. Don t know/prefer not to say Q8a. [ASK ALL] Does your organsaton provde ncentves to employees to encourage them to lve up to the organsaton s ethcal standards? Yes go to Q8b No go to Q9 Don t know go to Q9 Q8b. [ONLY THOSE WHO ANSWERED YES IN Q8a] Whch, f any, of the followng ncentves does your organsaton provde to encourage employees to lve up to ts ethcal standards? Select all that apply. A. It s part of our annual apprasal/revew B. It s taken nto account n assessng bonus payments C. Salary ncreases D. Publc commendaton (e.g. employee awards) E. Other (Please specfy) F. Don t know Q9. For how many people do you have day-to-day management responsblty? Ths could be n terms of supervson, lne management or personal management responsbltes 1-5 go to Q go to Q go to Q go to Q go to Q10 None end of questonnare

40 Appendx 1 38 Q10. [ONLY THOSE WHO INDICATED THEY WERE MANAGERS IN Q9] To what extent do you agree or dsagree wth the followng? Strongly agree Tend to agree Nether agree nor dsagree Tend to dsagree Strongly dsagree Don t know A. Petty fddlng s nevtable n a modern organsaton B. If we cracked down on every lttle fddle we would soon fnd we had no staff and probably no supplers as well C. As long as I come n on tme and wthn budget I am not gong to worry about a bt of petty fddlng D. There s no real dfference between fraud and a bt of expenses fddlng E. It s acceptable to artfcally ncrease profts n the books as long as no money s stolen

41 Appendx 2 39 Appendx 2 Methodology and Respondent Profle Ths report presents the fndngs of Ipsos MORI s publc research on behalf of the Insttute of Busness Ethcs. 674 face-to-face ntervews were conducted wth full-tme workers n Great Brtan as a part of the Ipsos MORI CAPIBUS survey, between 6-23 March The results are weghted so as to be representatve of the Brtsh workng populaton aged 16+. Total number of Brtsh respondents = 674 full-tme workers Gender Age Sector Managers Male Female Publc/ Voluntary Prvate Manager Non-manager 61% 39% 39% 49% 12% 30% 69% 46% 54%

42 40 Related IBE Publcatons IBE publcatons provde thought leadershp and practcal gudance to those nvolved n developng and promotng busness ethcs, ncludng senor busness people and ethcs and complance practtoners. Some recent publcatons related to ths topc whch you mght be nterested n nclude: Board Brefng: Checkng Culture: a new role for nternal audt Peter Montagnon Can nternal audt help a board understand how the company s culture s embedded n a way that affects behavour throughout the organsaton? What needs to be done dfferently or better to help ensure that ths s the case? Ths IBE Board Brefng looks at the role of nternal audt n advsng boards on whether a company s lvng up to ts ethcal values. It draws on the practcal experence of those actually nvolved at senor level n sx companes representng a wde range of sectors and szes. In a seres of ntervews, Audt Commttee chars, heads of nternal audt and heads of ethcs and complance talk drectly about how they have approached the challenge of checkng culture. Report: Settng the Tone: ethcal busness leadershp Phlppa Foster Back CBE Leadershp s essental to busness ethcs, as ethcal qualtes are essental to good leadershp. Ths report demonstrates that busness leaders should consder ethcal competence as a core part of ther busness acumen and provdes gudance to those wshng to buld a culture of trust and accountablty and strengthen the ethcal aspratons of ther organsaton. It ncludes ntervews wth busness leaders offerng practcal nsghts nto ethcal leadershp ssues. IBE Good Practce Gude: Surveyng Staff on Ethcal Matters Katherne Bradshaw, Andrea Werner & Ncole Dando How can organsatons use staff surveys to take ther ethcal temperature and assess the effcacy of ther ethcs programmes? Ths gude outlnes the dfferent methods for surveyng staff on ethcal matters and consders how to maxmse the effectveness of surveys. A lst of questons that companes can use to ask ther staff about ethcal matters s provded, ncludng the IBE s 12 benchmark staff survey questons.

43 41 Other IBE Resources Investng n Integrty Charter Mark Is there a way to prove a company s ntegrty? The IBE has developed a charter mark n assocaton wth Chartered Insttute of Securtes and Investment (CISI) to help busnesses and organsatons know f ther ethcs programme s embedded throughout ther organsaton. The Investng n Integrty (II) charter mark gves an assurance of trustworthness to clents, customers, nvestors and other stakeholders dong busness wth the organsaton. The real strength of the II framework s that t tests an organsaton s ethcal conduct aganst ts statements of values to ensure those values are properly embedded.it can help them dentfy whether or not the company s truly lvng up to ts values, from the boardroom to the shop floor. The testng uses a self assessment management questonnare and thrd party audt by II partner, GoodCorporaton, whose methodology has been adapted for the II charter mark. To fnd out more vst Say No Toolkt The IBE Say No Toolkt s a decson makng tool to help organsatons encourage employees to make the rght decson n dffcult stuatons. The Say No Toolkt delvers mmedate gudance to employees on a wde range of common busness ssues, especally those that could lead to accusatons of brbery. Employees tap through a seres of questons about the stuaton they face and the tool wll provde the rght decson to take: Say No, Say Yes or Ask. The answer also makes t clear why t s mportant to make that decson so your employees can have the confdence and the knowledge to respond correctly. Organsatons can use the both the IBE Say No Toolkt App and webste for free. The App can be downloaded on to any smartphone/tablet. You can start usng t for free now. Smply go to The Say No Toolkt can be customsed and branded to sut your organsatons needs and detaled procedures. For more nformaton emal nfo@be.org.uk or call the IBE offce on For detals of all IBE publcatons and resources vst our webste