2024年全球诚信合规调研报告系列一：调研结果综述

GlobalIntegrityReport2024|1

Howcantrustsurvivewithoutintegrity?

Whytakingthehuman-centered

approachempowersanethicalculture

Contents

Foreword3

Keyfindings

4

Introduction

6

1.Isthevalueofintegrityatrisk?

10

2.Whatistherootcauseofmisconduct?

14

3.Whichapproachtointegrityareyoutaking?

20

Methodology

26

Additionalinsights:Integrity-firstAItodaybuildstrustfortomorrow

28

Additionalinsights:ESGintegrityreachesacrossroadbetweenaspirationandregulation32

2|GlobalIntegrityReport2024

Foreword

Againstabackdropofrapidchange,persistentmacroeconomicandgeopoliticaluncertainty,aswellas

increasedregulatoryscrutiny,organizationsarefindingitincreasinglydifficulttomaintainacultureofintegrityandcompliance.Whilethirdpartiescontinuetobeinvolvedinasignificantnumberofintegrityincidents,theEYGlobalIntegrityReport2024suggeststhatthereareinternalforcesatplayaswell.

Inanunfortunateturn,sincetheEYGlobalIntegrityReport2022,nearlyfouroutof10respondentssaythey’dbewillingtobehaveunethicallyinoneormorewaystoimprovetheircareerorfinancialposition—morethan

oneandahalftimeshigherthanourpreviousfindings.Thissentimentamongourrespondentsservesasareminderthatanappropriatetoneatthetopiscritical.

The“say-do”gaphighlightedin2022—thedifferencebetweenwhatleaderssayandhowtheyact—has

grownwider.Atthetopoftheorganization,overtwo-thirdsofboardmemberssaythey’dbewillingtobehaveunethicallyinoneormorewaysfortheirownbenefit,upfrom43%twoyearsago.Morethanerodingtrust

withinandoutsidetheorganization,atop-down,“alltalk,nowalk”mentalityputstheorganization’sreputationandbottomlineatrisk.

Thegoodnewsisthatalmosthalf(49%)ofglobalrespondentsthinkcompliancewiththeirorganization’s

standardsofintegrityhasimprovedinthelasttwoyears,up7%from2022.It’satrendthatneedstocontinueastheintegrityrisklandscapeonlyincreasesincomplexity.

Themorechallengingthetimes,themoreimportantoperatingwithintegritybecomes.Intoday’senvironment,actingwithintegrityisvitalforbuildingtrustamongemployees,customers,suppliersandinvestors.Itstarts

withpeople.

Organizationswillwanttotakestepstobuildanintegrity-firstorganizationthatputspeopleatthecenterof

theirpolicies,trainingandculture.Atthesametime,leaderswillneedtostepup.Theyshouldsetthetone

foraculturethatdoesn’ttoleratemisconductbybehavingwithintegritythemselvesandbyactingagainst

misconductwhentheyseeit.Theyalsoneedtocreateanenvironmentwhereemployeescanspeakupwithoutretribution.

TheEYGlobalIntegrityReport2024reinforcestheneedfororganizationstorefocusonintegrity,andprovidespracticalandactionableinsightsthatcomplianceleaderscanusetopromoteacultureofcompliancewithin

theirorganizations.

AndrewGordon

GlobalLeader

EYForensic&IntegrityServices

GlobalIntegrityReport2024|3

Keyfindings

TheEYGlobalIntegrityReport2024highlightsapositivedevelopment,withalmosthalf

(49%)ofglobalrespondentsthinkingthatcompliancewiththeirorganization’sstandardsofintegrityhasimprovedinthelasttwoyears.Thismarksanincreaseofsevenpercentage

pointsfromourEYGlobalIntegrityReport2022findings.Butheadwindscontinuewhenitcomestothetruetestofintegrity:theeverydayactionsofpeople.

Willingnesstoactwithoutintegrityappearstobeontherise.

Nearlyfouroutof10(38%)globalrespondentsadmitthey’dbepreparedtobehaveunethicallyinoneor

morewaystoimprovetheirowncareerprogressionorremuneration—morethanoneandahalftimeshigherthanthefindingsinourlastreport.

Leadersneedtoactonwhattheysay.

Employeemisconductisdirectlyinfluencedbythe

behaviorstheyobservefromleaders.Ifleadersaren’tpreparedtoactwithintegrity,neitherwillemployees.Forexample,where25%ofworkerssaythey’dbehaveunethicallyfortheirownbenefit,thepercentagerisesto67%amongboardmembersand51%amongseniormanagement.Leaderswhotalkaboutintegritybut

don’treflectitintheirownbehaviorsarethehighestoffendersofintegritywithinanorganization.

Perceivedtoleranceofunethicalbehaviorisholdingsteady

2020

35%

2022

33%

2024

31%

%agreethatunethicalbehavioristoleratedwhenseniorstafforhighperformersareinvolved

Base:2020/2022/2024Global(2,948/4,612/5,464).

4|GlobalIntegrityReport2024

Leadersthemselvesfeltpressurenottoreportobservedmisconductwithintheirorganization.

Nearlytwo-thirdsofboardmembers(65%)and

57%ofseniormanagementfeelunderpressurenottoreportmisconduct(versus50%ofemployees).

Further,inthelasttwoyears,43%ofboardmembershavehadconcernsaboutmisconductwithintheir

organizationthattheychosenottoreport(versus19%ofemployees).Fourin10boardmembers

alsoadmitthatwhenanissueisreported,they’vefacedretaliationthemselvesorwitnessedadverseconsequencestowardsomeonewhoreported

misconduct(versus16%ofemployees).

Communicationandawarenessarecriticaltothesuccessofcomplianceprograms.

Morethanhalf(54%)ofglobalrespondentssay

thatemployeesnotunderstandingpoliciesor

requirements,combinedwithalackofinternal

resourcestomanagecomplianceactivities,createsopportunitiesforemployeestoviolateintegrity

standards.Inresponse,52%agreethatawareness,

trainingandcommunications,aswellasgovernanceandleadership,aretopprioritiesfortheirintegrityprogramsoverthenexttwoyears.

ofglobalrespondentsagreethat

awareness,trainingandcommunications,

aswellasgovernanceandleadership,are

topprioritiesfortheirintegrityprograms

overthenexttwoyears.

Note:Thissurveyisdesignedtobeasglobalaspossible,withinpracticalconstraints.Wehaveconductedabroadsurveyofgeographies,sizesoforganizationandemployeelevels.Assuch,thesurveyresultsidentifyresponsesfromabroaddatasetandmaynotbeindicativeofthereader’sdomicilebutreflecttrendsidentifiedbyrespondentsinamorediversesetofcircumstances.Thissurveyincludestheviewsofindividualswho

haveself-identifiedasaboarddirector.EYprofessionalsdonotdefine“aboard”withinthecontextofthissurvey;referencestoboarddirectorscould,therefore,includeavarietyofboardtypesacrosstherangeoforganizationswheresurveyrespondentswork.

GlobalIntegrityReport2024|5

Introduction

Introduction

Integrityisanessential

componentoftrust.

Withouttrust,fromemployees,

customers,suppliersandinvestors,the

futureviabilityoftheorganizationcan

comeunderthreat.

start(butnotend)withboardmembers

Byacknowledgingtheseriousnessof

misconductandtakingproactivestepsto

prevent,detectandaddressit,companies

canbuildanintegrity-firstorganization

thatputspeopleatthecenterand

Sadly,therewillalwaysbesome

“potentiallycompromisedemployees.”But,bycreatinganintegrity-first

culturethatnotonlyencouragesbut

alsoincentivizesemployeestoactwithintegrity,evenwhennooneislooking,

organizationscancreateanenvironmentthattrulyreflectitsbeliefsystemand

doingtherightthing,evenintimesofadversityanduncertainty.

establishesarobustculturethatis

supportedbyunwaveringcommitmentfromleadershipandon-demandsupportforemployees.

However,foranyintegrityandcomplianceprogramtosucceed,companiesmust

andexecutives,whomustsetthetoneforaculturethatdoesn’ttoleratemisconduct.Leadersneedtolisten,practicewhattheypreachandactagainstmisconduct.

Corporateintegrityandtrust

arethefoundationsuponwhich

businessexcellencesits.When

werefertointegrity,werefer

tothecreationofaculturethat

supportsethicaldecision-making,andprotectingorganizations

againstthetemptationstopursueshort-termgainsattheexpenseof

ethicalbehavior.Inanenvironmentofpersistentmacroeconomic,

geopoliticalandmarketvolatility,andregulatoryscrutiny,today’sexecutivesfindthemselves

navigatingabusinesslandscapeofincreasedcomplexityand

uncertaintythatmaybeputtingcorporateintegritytothetest.

Thecontentinthisreporthelps

organizations,executivesandleaders

entrustedwithsteeringthemoralcompassofthecompanyduringtheseuncertain

timestolearnmoreabouthowbusinessesacrosstheglobeareapproachingintegrityamidsignificantoperationalchallenges

andregulatorycomplexity.Itincludesourinsightsandkeytakeawaystoaddresstheevolutionofthecomplianceenvironmentandtheestablishmentoforganizational

integrity.ThefindingsoftheEYGlobal

IntegrityReport2024suggestthatchiefcomplianceofficers(CCOs)andin-housegeneralcounsel,inparticular,areseeing

theirrolesandresponsibilitiesexpand.Thisisaddingpressuretoanincreasinglylonglistofrequirementsandskillstheyneed

tokeepcurrentwithinarapidlychangingenvironment.

Oneinfiveorganizationshashad

asignificantintegrityincidentin

thelasttwoyears.Oneinfive

respondentsadmitsthattheirorganizationhashadasignificantintegrityincident,

suchasamajorfraud,dataprivacyand

securitybreach,orregulatorycomplianceviolationinthelasttwoyears.Among

boarddirectors,thispercentagerisestoone-third.Notably,ofthosewhosaytheirorganizationhadasignificantintegrity

incident,morethantwo-thirds(68%)saytheincidentinvolvedathirdparty.

Basedonananalysisofover500,000

corporateviolationsintheUSandUKfrom2010to2023,1weidentifiedthefollowingkeyhighlights:

AlmostUS$1trillioninpenaltieshavebeenincurredsince2010(inflation

adjusted),withover40%growthinboththenumberofviolationsandthenumberofcompaniesinviolation.

Certainfinancialandemployment

violationshavebecometwoto10timesmorefrequentsince2010,including

accountingdeficiencies,AMLdeficiencies,taxviolations,laborstandards,workplacesafetyandconsumerprivacy.Onthe

flipside,therehasbeenasharpdropin

21%

ofglobalrespondentssaytheirorganizationhasexperiencedasignificantintegrityincidentinthelasttwoyears.

violationsrelatedtoemployee

compensation,publicsafety,banking

andtheenvironment,andlimited

progressonanti-competitivebehavior,

discriminationorwhistleblowerretaliation.

Violationstypicallyassociatedwith“afewbadapples”accountforlessthan

10%ofpenalties(e.g.,fraud,bribery)—

themostsalientviolationsmayrequire

anerosionofintegrityculturetohappen(e.g.,environment,price-fixing,consumerprotection).

Repeatoffendingislinkedtoanerosionofculture.Ininstanceswherecompanies

wererepeatoffenders,systematic

issueswithintheircomplianceprogramororganizationmaynothavebeen

addressed.Thenumberofdifferent

violationtypessteadilyclimbsfromoneinfourcompanieswithaviolationinasingleyearupto8.3forthosewithaviolation

everyyearsince2010.

1AnalysisofcorporatecivilandcriminalpenaltiesincludedintheViolationTracker(

/

)andViolationTrackerUK(https://

/)databases,bothproducedbytheCorporateResearchProjectofGoodJobsFirst.AllpenaltyamountswereconvertedtoUS$and

inflationadjustedto2023dollars.ThisanalysisexcludesfinesoflessthanUS$5,000(nominal)intheUSandincludes“cautions”withnodollaramountissuedbyUKregulators.

GlobalIntegrityReport2024|7

Introduction

33%

29%

19%

13%

47%

47%

56%

29%

30%

23%

10%

8%

13%

8%

13%

8%

“

Inbusiness,trustandintegrityarethepillarsthatuphold

anorganization’sreputationandbuildconfidence.

Ignoringethicalvaluesisn’tjustalapseinjudgment—it’sagamble

withanorganization’smostvaluableasset.

AndrewGordon,GlobalLeaderEYForensic&IntegrityServices

Inthelasttwoyears,howoftenhaveyouheardmanagementcommunicateabouttheimportanceofbehavingwithintegrity?

53%

30%

10%

5%

GlobalBoarddirectorSeniorOtherOther

ormembermanagementmanagementemployee

NeverRarelyOccasionallyFrequently

Note:Thechartexcludes%ofrespondentswhoanswered”don’tknow”and”prefernottosay”sodoesnotaddupto100%.

Thegapbetweentalkandaction

remainswide

Thesay-dogapisanissueweraisedintheEYGlobalIntegrityReport2022.

Thelatestfindingssuggestlittlehas

changedtoclosethegapbetweenwhatleadersaresayingaboutcorporate

integrityandwhattheyaredoing—orwhattheirpeoplearedoing.Thisisespecially

concerningattheboardlevel,where

executivesappearmorelikelytobehave

badlythemselvesandtoleratethebehaviorofpotentiallycompromisedemployeesif

theyareseniororhighperformers.

Morethaneroding(orerasing)trust

withinandoutsidetheorganization,atop-down,alltalk,nowalkmentalityputs

theorganization’sreputationandbottom

lineatrisk.Onerecentresearchfindingsuggeststhatcorporatefrauddestroys

roughly1.6%ofacompany’sequityvalueannually,equaltoUS$830bin2021.2

Leadersacrosstheorganizationneedtoactwithintegrity.Theyshouldbesubjecttoatleastthesameresponsibilitiesanddisciplinaryactionsforwrongdoingthatapplytoeveryoneelseinthebusiness.

Organizationscancreateavirtuouscircleofintegrity

Intimesofrapidchangeanddifficult

marketconditions,itcanbechallengingfororganizationstomaintainor

strengthentheirstandardsofintegrity.

Arguably,thisisexactlythetimetomake

integrityatoppriority.Bytakinganagile,human-centeredapproachtointegrity—

onethatputstherightprogramsinplace

todrivebehaviortocreateastrongcultureandastrongbeliefintheircommitment

tointegrity—organizationscankeeppacewithevolvingregulationsandincreasingsocietalexpectations.Equally,theycan

createavirtuouscircleofintegritythatsetsacoursetorenewedtrustwithin

theorganization,andamongcustomers,investors,governmentsandsocieties.

2Dyck,Alexander,Morse,Adair,Zingales,Luigi,Howpervasiveiscorporatefraud?,GeorgeJ.StiglerCenterfortheStudyoftheEconomyandtheState,NewWorkingPaperSeriesNo.#327,January2023.

/sol3/papers.cfm?abstract

_id=4590097#.Accessed20March2024.

8|GlobalIntegrityReport2024

Introduction

“

Corporateintegrityisaboutchoosingethicalcourage

overconvenientshortcuts,prioritizingwhatisrightoverwhatisprofitable,andembodyingthecompany’scorevaluesineveryaction,notjustinrhetoric.

ArpinderSingh,GlobalMarketsandIndiaLeader

EYForensic&IntegrityServices

GlobalIntegrityReport2024|9

1

Isthevalueof

integrityatrisk?

Isthevalueofintegrityatrisk?

ofallglobalrespondents

thinkcompliancewithintheirorganization’sstandardsof

integrityhasimprovedinthelasttwoyears.

Thecurrentstateofintegrity

Almosthalfofrespondentsreport

improvedstandardsofintegrity.

Forty-ninepercentofallglobal

respondentsthinkcompliancewithintheirorganization’sstandardsofintegrityhas

improvedinthelasttwoyears,marking

anincreaseofsevenpercentagepoints

fromtheEYGlobalIntegrityReport2022findings.Inemergingmarkets,58%of

respondentsbelievecompliancehas

improved,whichisapositivedevelopment

giventheinherentintegrityand

compliancerisksinsuchmarkets.

Topreasonscitedforimprovedintegritysuggestthatimprovementsarecoming

bothfrombetterdirectionfrom

managementandleadership,andstricterregulationandpressurefromregulators.

Despitetheriseinoverallperception

ofintegrity,companiesstrugglewith

significantincidentsandviolations.

Twentypercentofcompaniesadmitthattheirorganizationhashadasignificantintegrityincident,suchasamajorfraud,dataprivacyorsecuritybreach,or

regulatorycomplianceviolationinthelasttwoyears.Notably,ofthosewhosaytheirorganizationhadasignificantintegrity

incident,morethantwo-thirdsreporttheincidentinvolvedathirdparty.

Ingeneral,hascompliancewithyourorganization’sstandardsofintegritygottenbetterorworseinthelasttwoyears,orstayedthesame?

2024

GlobalDevelopedEmerging

39%

58%

49%

42%

6%

50%

36%

5%

7%

TheyhavegottenbetterTheyhavestayedthesameTheyhavegottenworse

Note:Thechartexcludes%ofrespondentswhoanswered”don’tknow”and/or”prefernottosay”sodoesnotaddupto100%.

organization.Itcanalsopinpointtargetedimprovementswithin

discretecomplianceareas.

•Forexample,accordingtothe

research,compliancepersonnel

mostoftencitedemployeesnot

understandingpolicyrequirementsandmisunderstandingsdueto

culturaldifferencesasthetop

issuescausinghistoricincidentsandviolations.Organizations

candeveloptargetededucationcampaignsandon-demand

communicationchannels

forhigher-riskemployees,

jurisdictionsandcomplianceriskareas.Thiscanbemoreeffectivethanclassroomorweb-based

trainingmodules.

Eveninthemostethical

organizations,misconductcanandwilloccur.Suchmisconductintheformofmajorcorporateviolationsiscostly,bothintermsofinternalresourcingtoinvestigateand

remediatemisconduct,and

settlingviolationsandfineswithgovernmentregulators.

Organizationsshouldbe

periodicallyevaluatingthenatureoftheirincidentsanddeterminingthelargestissues,driversand

lessonslearned.Thisexercise

goeshandinhandwithongoing

riskassessmentactivitiesandcanhelpidentifysystemicoperationalissuesrequiringmorebroad

remediationacrossthe

EYkeytakeaways

•

•

GlobalIntegrityReport2024|11

Isthevalueofintegrityatrisk?

Headwindsonsustainingintegrity

Intoday’senvironment,whatfactorsarehavingthegreatestinfluenceonacompany’sabilitytoactwithintegrity?Theresearchpointstoanumberofkeyexternalandinternalchallenges.

Externalrisks

Nearlyhalf(49%)ofrespondentsare

findingitdifficulttoadapttothespeed

andvolumeofchangeinregulations,andsayeconomicpressures,suchasinflation,unemploymentandexchangerates,makeithardertocarryoutbusinesswith

integrity.Geographically,from

alistoftwelveregions,globallegaland

compliancerespondentsciteChina(22%),EasternEurope,includingRussia(21%),

USandCanada(17%)andMiddleEastandNorthAfrica(16%)asposingthegreatestintegrityrisks,includingcomplianceand

fraudrisks,fordoingbusinessinthenexttwoyears.

49%

ofglobalrespondentssaythecurrent

macroenvironmentisthegreatestsource

ofexternalpressureonemployeestoviolateorganizationalstandardsofintegrity.

Employeerisks

Continuingchallengesaroundmisconductaremakingitdifficultfororganizations

todrivehigherstandardsofintegrity

acrossthebusinessandamongthird

partiesandsupplychains.Morethan

one-third(38%)ofglobalrespondentssaythey’dbewillingtobehaveunethically

ifaskedbyamanager.Nearlyhalf(47%)ofrespondentssayemployeesposethe

greatestintegrityriskfortheorganizationoverthenexttwoyears.

47%

ofglobalrespondentssaypeoplewithintheorganizationposethegreatestintegrityriskfortheorganizationoverthenexttwoyears.

Operationalrisks

While40%citeprivacyandsecurityastheirgreatestoperationalintegrityrisks,53%

ofglobalrespondentssaythatemployee

turnoverandemployeesnotunderstandingpolicyarethegreatestinternalthreats

toorganizationalstandardsofintegrity.

53%

ofglobalrespondentssaythatemployee

turnoverandemployeesnotunderstandingpolicyarethegreatestinternalthreats

toorganizationalstandardsofintegrity.

Whenconductingriskassessments,it’s

importantforcompaniestoconsider

theimpactofbothinternalandexternal

factorsonbusinessstrategies,commercialactivitiesandemployeepressures.It’salsoimportanttounderstandnotonlywhich

factorsapplybutalsohowandwhythey

applytolinktocompliancerisksandbetterinformcompliancepriorities.

Forexample,ifemployeeturnoverisseen

asoneofthebiggestinternalfactors

becauseitweakensthecompany’s

abilitytospotandpreventwrongdoing,thisinsightprovidesopportunitiesnotonlyfocusedonemployeeretention

andimprovedonboardingbutalsoonautomatingpreventivecontrolsandmonitoringthemforeffectiveness.

Accordingto

Transparency

International’s2023

CorruptionPerceptions

Index,corruption

continuesto

thrivearound

theworld.

3CorruptionPerceptionsIndex2023,TransparencyInternational,2023,

/images/CPI-2023-Report.pdf

.

4Moushey,Leah,Tillen,JamesG.,Hollinger,Abi,“Anti-Bribery&Corruption:Globaloverview,”Miller&ChevalierChartered,

,2February2024,

/library/detail.aspx?g=b8e34cdc-59f0-4560-80c0-708ac707e5cd.Accessedon20March2024

.5Ibid.

12|GlobalIntegrityReport2024

Isthevalueofintegrityatrisk?

Organizationshaveadopteda

numberofpoliciesandprograms

toenhanceintegrity.

Percentageoforganizationsthathavetakenthefollowingactions:

72%

Disincentivizedbadactions

•Employeedisciplinemeasures

•Internalinvestigationsandremediationprocesses

•Employeecompensationstructuresthatreduce

orrecoupcompensationforfailuretocomplywithethicalstandards

•Executivecompensationandbonusclawback

incasesofcompliancebreaches

67%

Implementednewtraining

•Trainingonethicsandintegrityinbusinessorprofessionallife

•Processesortrainingfor

conductingduediligenceoncustomers

•Processesortrainingfor

conductingduediligence

onthirdparties,suchas

suppliers,vendors,partners,customersorconsultants

55%

Enactednewpolicies

•Trainingonethicsandintegrityinbusinessorprofessionallife

•Apolicyoneithercorporatesocialresponsibility(CSR)orenvironmental,socialand

governance(ESG)policies

concerningappropriate

communicationchannelsandcorporateaccesstodataon

personalmobiledevicesandmessagingplatforms,e.g.,WhatsApp

31%

Incentivizedgoodbehavior

•Incentivestoencourage

behaviorsthatdemonstrateintegrity

GlobalIntegrityReport2024|13

rootcauseof

misconduct?

2

Whatisthe

Whatistherootcauseofmisconduct?

Tobetterunderstandwhatbreedsmisconductandhowitcanthrive,EYconductedadeeperanalysis

ofthereportdata.Theresults

suggestthatmostorganizationscandividetheiremployeesinto

oneofthreetypesbasedontheirwillingnesstoexhibitillegalor

unethicalbehavior.

1.Principledemployeesareunwillingtoactunethicallyforpersonalgainorattherequestofamanager.

2.Potentiallycompromisedemployees

arewillingtoactunethicallyforpersonalgainorattherequestofamanager.

3.Potentialenablersarewillingtoact

unethicallyattherequestofamanagerbutwouldnotdosoforpersonalgain.

Morethanhalf(58%)ofemployees

takeaprincipledapproachtointegrity,indicatingamajorityofemployeesarealreadyinclinedtoupholdaculture

ofintegrity.However,thisleavesa

significantremainderofemployeeswithintheorganization(42%)whoarewilling

tosacrificeintegrityundertheright

conditions.Employeesmustthereforebeproperlyincentivizedandsupportedwhen

theyhavethecouragetocomeforwardandreportwrongdoing,sothatmisconductcanbeappropriatelyaddressedandcorrected.

Theresearchshowsthatpotentially

compromisedemployeeshaveamore

negativeviewoftheirorganization’s

complianceenvironment.Theyareless

likelytosaytheirorganizationshave

programs,policiesandcontrolsinplacetoencourageintegrity.They’remorelikely

tobelieveunethicalbehaviorisoften

toleratedattheirorganization.Further,

theyarenearlythreetimesmorelikelytosaythatunethicalconductisignored

withintheirteams,andmorethan

fivetimesmorelikelytosaythat

unethicalconductisignoredwithintheir

organization’ssupplyordistributionchain.

Morethanhalf(58%)of

employeestakeaprincipled

approach,whichbodeswellforthefutureofcorporateintegrity.

Employeeapproachestowardintegrityandunethicalorillegalactivities

Basedonemployees’willingnessandmotivationstocommitillegalorunethicalacts

Employees’approachtointegrity

%ofemployees

58%

Descriptionofemployees’approachtointegrity

Principledemployees

38%

4%

Unwillingtoactunethicallyforpersonalgainorattherequestofamanager

Willingtoactunethicallyforpersonalgainorattherequestofamanager

Willingtoactunethicallyatthe

requestofamanagerbutwouldnotdosoforpersonalgain

Potentiallycompromisedemployees

Potentialenablers

Employeeswhosaytheircompanieshavethefollowingprograms,policiesandcontrolsinplacetoencourageintegrity

%ofemployees

Trainingonethicsandintegrity

Incentivestoencourageethicalbehavior

Robustcontrolstoensurerulesarenoteasytobypass

Definedprocessestomanagemisconduct

Disciplinarymeasurestoaddressillegalorunethicalbehavior

Potentiallycompromisedemployees

Principledemployees

49%

33%

30%

32%

41%

27%

46%

31%

49%

61%

GlobalIntegrityReport2024|15

Whatistherootcauseofmisconduct?

Potentiallycompromisedemployeesare

morelikelytohavehadbadexperiences

whenreportingmisconduct.

Interestingly,potentiallycompromised

employeesaremorelikelytoworkfor

organizationsthatexperiencedmajor

integrityeventsinthepasttwoyears,

causingmorepotentialreputationalharmandincurringmoreregulatoryaction.

Potentiallycompromisedemployeesaremorelikelytohavehadbadexperienceswhenreportingmisconduct.Theyweretwiceaslikelyasprincipledemployeestohavebeenpressurednottoreport

misconduct,nearlythreetimesmorelikelytohavefacedretaliationfor

reportingmisconduct,andtwoandahalftimesmorelikelytohavefeltmisconductwasn’tproperlydealtwith.

Forpotentiallycompromisedemployees,

breakingwithintegrityguidelinesmay

belessaquestionofbeinghardwired

tobehavebadlyandmoreaquestionof

learned—orrationalized—behavior.Theymayhavetheattitudethat“ifothersare

doingit,Icangeta