Unethical behavior costs companies $130,000 on average per year according to the Association of Certified Fraud Examiners (ACFE) in their Report to the Nations 2018. It’s more for smaller companies.
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.