PILLAR SIX

Perceptions of Manager

PILLAR SIX

Perceptions of Manager

What it is we aim to measure:

Employee perceptions of their immediate supervisor, and whether that leader is an ethical role model and fosters an environment which encourages questions about and reporting of ethical misconduct

Topics covered in the assessment:

The belief that one’s manager is committed to integrity
Whether employees are comfortable approaching their manager with difficult questions or reports of misconduct
The frequency with which discussions take place between an employee and their manager on the topic of integrity, speaking up, or compliance

Why it matters:

Based on our experience and data, managers throughout the organization are the single most inﬂuential factor in establishing and maintaining a healthy ethical culture. Managers, by default of their elevated roles, become the most accessible models for how to succeed and advance your career path within an organization. Ensuring managers are modeling the type of decision-making and leadership behaviors that align with the organization’s ethical standards and directives is of paramount importance.

It’s also important to note that fostering a “speak-up” culture provides beneﬁts beyond ethics and compliance. When employees feel comfortable raising ethical concerns, they will be more likely to share new product ideas, client challenges, and so much more. Preparing managers to lead teams where everyone is comfortable using their voice is time well spent.

A manager resource

for an ethical culture

Learn more

PILLAR SIX

Perceptions of Manager

What the data says:

This pillar tends to be an area that strongly correlates with all other areas of culture measurement:

88%

view their manager as a role model for ethical behavior

89%

are comfortable approaching their manager with issues or questions related to ethical conduct.

27%

of participants indicated their manager discusses ethics or compliance-related issues/topics at least once per quarter, on average.

Organizations within the data set are committed to a strong ethical culture and are leaders at equipping managers to lead ethically and create an open-door environment. Managers are the most visible leaders in employees’ day-to-day work. When employees see their manager consistently acting with integrity, it sets a powerful example and reinforces ethical behavior as a standard. However, opportunities still exist to leverage managers as tone-setters for ethical culture throughout an organization.

Nineteen percent of employees are only being reached by their managers with ethics and compliance related discussions just once per year – or not at all.

It is important to note that within our dataset, employees are more than twice as likely to be comfortable approaching their manager if there are at least quarterly discussions of ethics or compliance related issues/topics by managers.

Managers serve as a crucial link between organizational ethics initiatives and day-to-day operations, ensuring that corporate values are reflected in employees' actions. Managers are the tide that raises all ships with respect to employee perceptions of ethical culture, so increasing the frequency of these communications should remain top of mind for all ethics and compliance functions.

PILLAR SIX

Perceptions of Manager

How Ethisphere clients have used the data/insights:

Ethics and compliance leaders often use the data from this pillar to set the tone for manager training, helping managers understand why it is so important that they hear employee concerns, listen with an attitude of appreciation (even if it’s bad news), and know where to go for help addressing an issue or answering an employee question.

Perceptions of one’s manager as an ethical leader are further informed by insights from Ethisphere’s other pillars. These interconnected topics directly shape how we evaluate employees’ views of their managers. For instance, are managers frequently identified as sources of pressure to compromise the Code of Conduct or company values to meet business objectives? Conversely, how often do employees turn to their managers as a trusted resource for reporting misconduct or seeking guidance on complex issues? Additionally, how often do employees cite support from their immediate manager as a key reason they felt empowered to report potential misconduct? These questions help provide a fuller picture of the critical role managers play in fostering or undermining an ethical workplace culture.

Top Tips for Your Program:

Provide managers with a variety of resources that facilitate organic discussions about ethics and compliance related topics or issues. Develop the communication assets with appropriate context that anchors the messaging in the “lived” employee experience.

Establish appropriate metrics – and rewards – for managers to assess performance and adherence to ethical standards.

Facilitate peer-to-peer knowledge transfer between managers to disseminate practical behaviors and efforts that amplify messaging from the central ethics and compliance function. Champion managers that are doing this at a high level.