PILLAR FIVE

Organizational Justice

PILLAR FIVE

Organizational Justice

What it is we aim to measure:

Consistent application of rules and consequences is the concept behind our “organizational justice” pillar. Colloquially referred to within Ethisphere as the “Animal Farm” pillar, this group of questions focuses on employee perceptions of whether the company holds every wrongdoer accountable, regardless of rank. It also considers the awareness of discipline and the investigation process.

In other words, are all the animals equal? Or are some of them more equal than others?

Topics covered in the assessment:

Employee confidence that disciplinary actions are enacted when misconduct occurs
The perception that the rules are the same for everyone, regardless of role, tenure, or status
Faith that an investigation would take place if one had to submit a report

Why it matters:

The act of stepping forward to raise a concern is courageous. Employees want to know this act will be respected by the organization and action will be taken to properly address the concern. Perceptions of organizational justice hinge on employees believing the rules apply equitably to everyone and that no individual – regardless of stature within the organization – is above the consequences of misconduct. When an organization fails to create this sense of equality, it introduces a corrosive force that runs against efforts to establish and maintain a “speak-up” culture.

Our data shows employees who agree disciplinary actions are handled equitably are more likely to have reported observed misconduct than participants who were unwilling to afﬁrm such faith in equitable disciplinary measures.

When employees do not believe the organization will take the matter seriously, either through investigation or adjudication, they are forced to decide as to whether doing the right thing will justify the vulnerability that comes with stepping forward.

PILLAR FIVE

Organizational Justice

What the data says:

This pillar tends to be an area that reveals critical opportunities within organizational pockets, often determined by the strength of proactive efforts to educate the employee population about the reporting, investigations, and adjudication processes:

81%

of surveyed participants agreed that if they raised a concern about unethical behavior or misconduct, they believe the Company will fully investigate it.

77%

believe disciplinary actions are taken when individuals engage in unethical behavior or misconduct at the Company.

27%

of participants did not afﬁrm they believe the same rules and associated disciplinary actions for unethical behavior are the same for every employee at their organization.

The reality is that most employees are unlikely to ﬁnd themselves in a position to report misconduct, participate in an investigation, or be privy to the adjudication process while employed by an organization. This is reflected in survey data with elevated levels of neutral – neither agreement nor disagreement – responses for many organizations. That does not excuse an organization from making the effort to educate employees about these processes, because in that void a narrative of hearsay will become the default reality.

If it takes one instance for an organization’s reputation to experience critical damage, is it worth leaving such a determining factor about whether employees raise a concern up to hearsay?

PILLAR FIVE

Organizational Justice

How Ethisphere clients have used the data/insights:

The delta between the number of employees who say their organization would investigate a concern and those who are conﬁdent action would be taken varies by company but exists for every client we have worked with. The size of this difference reveals the degree to which the company needs to work to “lighten” the black box of investigations for employees to make what happens less of a mystery.

Top Tips for Your Program:

Increase the transparency surrounding the reporting process and related activity. This could include a description of the steps involved in submitting a report and the resulting investigation, communicating anonymized metrics on reporting activity in aggregate, and an explicit description of outcomes along with listing the full range of disciplinary actions available

Create a simple process that allows managers to easily log any open-door report that has been brought to their attention.

Close the loop. Notify reporters, through appropriate channels, when an investigation concludes to provide closure and maintain trust.

Share compelling case studies and stories that demonstrate how the rules and consequences for unethical behavior are equitably applied across all levels of the organization

Videos communicate to managers and employees about their role in fostering an ethical culture.

Learn More