Corporate Cultural Integrity Boosts Employee Morale

In a blog article from‘s Industry News blog, a research and advisory services company named the Corporate Executive Board (CEB) released new findings that indicate that integrity has a tangible impact on corporate performance.

The data shows that organizations with weak ethical cultures experience 10 times more misconduct than companies with strong ethical cultures. CEB suggests corrective actions to help organizations reduce their risk profiles to enhance corporate performance and increase shareholder return.

An organization’s culture is becoming more recognized as a crucial element in the business mix. CEB research shows that the most effective preventative measures start from within the corporation. One such tactic is ensuring open communication between employees and managers. Another positive reinforcement tactic is establishing and nurturing trust in leadership.

“Operating in an ethical culture may seem like a given, but for many companies creating one is an uphill battle,” said Dan Currell, managing director of Corporate Executive Board’s legal and compliance practice. “In an ethical culture, employees feel comfortable speaking up and voicing their concerns, and they trust their colleagues will do the same.”

Currell also notes that to allow employees this openness, leadership figures must set a tone that inspires trust in their own ethics and willingness to listen to and respond to concerns. However, many employees will be stand-offish in reporting misconduct. This ultimately prevents ethical cultures from growing.

According to a CEB study of nearly 500,000 employees in over 85 countries, corporate cultural integrity not only reduces employee misconduct, but it can greatly improve overall business performance. The findings offer a few examples, such as:

  • Companies with strong openness of communications deliver shareholder returns an average of 5 percent higher than their peers.
  • Managers who exhibit corporate values can improve employees’ performance by 12 percent.
  • Employees in high-integrity cultures are 67 percent less likely to observe significant instances of business misconduct.

Currell said companies that actively address cultural integrity within their organizations can reduce overall risk. CEB has identified seven attributes that drive integrity perceptions within organizations. To learn more about these attributes or CEB’s findings on corporate cultural integrity, click here. To read more about this article from’s blog, Industry News, you can read the full article here.

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