Current Global Recession Driving Organizational Ethics Risk


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Current Global Recession Driving Organizational Ethics Risk

  1. 1. EthicsStat With data and insight contributions by: …Now You Know Current Global Recession Driving Organizational Ethics Risk Ethics Resource Center July 7, 2009
  2. 2. The Recession Continues to Create Anxiety and Doubt in Employees and the Workforce in General Consumer Confidence Is Down* The Conference Board Consumer Confidence Index™, which had improved considerably in May, retreated in June. The Index now stands at 49.3 (1985=100), down from 54.8 in May. Levels of Anxiety and Stress Are Up** In the latest Washington Post-ABC News poll, 57 percent of those surveyed said the nation's economic condition is a cause of stress in their lives. More than a quarter said they had "serious" anxiety. The percentage of stressed-out people was higher among those who said their finances had suffered "a great deal" from the recession. Among this group, 83 percent said they were stressed, with 55 percent reporting serious anxiety. Little Sign of Optimism*** And while a New York Times/CBS News poll found fewer people saying the economy had worsened, most did not think it was improving. People overwhelmingly thought the recession would last another year or more, and 70 percent were concerned that a household member would be jobless. Sources * ** ***
  3. 3. Global Recession Has Resulted in Major Organizational Changes such as Layoffs and Restructuring This turmoil has generated serious implications for the ethics and compliance function Based on a survey of more than 125,000 employees in 75 countries over the past five quarters, the Corporate Executive Board found: A 20% increase in A 5% decline in frontline A 10% increase in the observations of employee perceptions of number of disengaged misconduct from the first to senior management's employees, from one in ten the second half of 2008 commitment to integrity to one in five, causing declines in companywide productivity of up to 5% *Source: Compliance and Ethics Leadership Council Research -
  4. 4. The Compliance and Ethics Leadership Council (CELC) CELC, a division of the Corporate Executive Board, serves more than 400 of the world’s preeminent companies – through their Chief Compliance and Ethics Officers – with:  Leading-edge research;  Quantitative analysis;  Benchmarking support; and  Implementation tools on their most important challenges. • Managing compliance and ethics risks • Measuring program effectiveness and ethical culture • Developing line managers as ethical leaders • Adapting to a new regulatory (and economic) landscape The Corporate Executive Board (CEB) drives faster, more effective decision-making among the world’s leading executives and business professionals. As the premier, network-based knowledge resource, it provides them with the authoritative and timely guidance needed to excel in their roles, take decisive action and improve company performance. Powered by an executive network that spans over 50 countries and represents more than 80% of the world’s Fortune 500 companies, the Corporate Executive Board offers the unique research insights along with an integrated suite of exclusive tools and resources that enable the world’s most successful organizations to deliver superior business outcomes. For more information, visit