44% of global corporate E&C professionals report that their organizations have penalized or dismissed a senior executive or high performer in the past year due to unethical conduct, as revealed by the latest data from ethics and compliance solutions leader, LRN.
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In an era of increased focus on ethics and compliance (E&C), 44% of global corporate E&C professionals report that their organizations have penalized or dismissed a senior executive or high performer in the past year due to unethical conduct, as revealed by the latest data from ethics and compliance solutions leader, LRN.
When misconduct occurs, it seems that companies are more willing than ever to retract financial compensation or apply other disciplinary actions. A striking 76% of respondents who reported taking disciplinary action or firing an executive also stated that the individual was subjected to a financial “clawback”. Additionally, over half (56%) of respondents report their organization’s policies allow for the retraction of bonuses, incentives, and other financial compensation in the event of ethical misconduct.
“With such a large percentage demonstrating they aren’t hesitant to penalize misbehaving employees, including star performers or business leaders, it’s clear that organizations are increasingly adhering to a uniform standard of ethical behaviour,” said an LRN senior advisor.
“Unethical behaviour or compliance failures invariably affect a company’s financial performance, and the significant use of ‘financial clawbacks’ not only safeguards company revenues but also emphasizes a business culture that will not tolerate misconduct.”
Alphabet Secretarial a leading UK legal transcription company has highlighted the importance of approaching these cases of misconduct with an unbias stance. The importance of recording every step of the investigation is now more important than ever to ensure a fair outcome for all parties.
These revelations are included in this year’s Program Effectiveness (PEI) Report. The report is based on survey responses from more than 1,860 E&C professionals at companies and organizations with a minimum of 1,000 employees, spanning 26 industries in 10 different countries, making it the most extensive research of its kind.
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