Unethical behavior costs small employers (< 100 employees) approximately $200,000 per year and up to 7% of revenue for larger employers. This is according to the Association of Certified Fraud Examiners (ACFE).
Additional research studies show that creating a culture that promotes ethical behavior can add up to 8% in productivity, reduce turnover and its related costs from 10 – 200%, and reduce the amount of money you spend to prevent theft of products and resources by 15-50%.
Here’s what CEOs, CFOs and business leaders are saying impacts their ability to lead organizations effectively:
- Codes of Conduct, while important legal and compliance documents, do not train people to understand how to respond in crisis situations or when confronted with real-life business dilemmas.
- There is no longer a standard definition of business ethics in the workplace. People from different cultures and backgrounds may not have the same definition of “right” vs “wrong”.
- Existing ethics training programs do not always engage workers or help them understand what is appropriate behavior.
Accountability, trust and integrity are important qualities of a star performer. Simple errors or refusal to accept responsibility for our own actions can prevent or destroy the ability to trust co-workers, colleagues and leaders. Studies have shown that employees who cannot trust their leadership teams or colleagues are up to 80% more likely to leave, resulting in higher turnover costs and lost productivity.
e-Factor!® addresses these issues and gives participants permission to be creative, to make mistakes and to learn from those mistakes.