Build a Culture of Integrity

Reduce employee misconduct with a stronger ethical culture

Failure to report misconduct

Your misconduct mitigation may not be as effective as you think. In today's organizations, 59% of observed misconduct is never reported by employees. Even more alarming is that only 14% of the information about potential misconduct will make its way to the compliance department.

High cost of unreported misconduct

Misconduct is too costly to ignore. A single FCPA violation costs $11.5 million. A single data privacy breach costs $3.4 million. And a single instance of fraud can cost 5% of a company's annual revenue. 

Yet employees often fail to take their reporting responsibilities seriously because they fear retaliation or inaction by the company.

“It’s great for us to show the data that Gartner has accumulated... that our senior leadership want to see.”

Jackie Baratian

Chief Compliance Officer, Maxim Healthcare Services

Insights You Can Use

Organizations with stronger ethical cultures see fewer instances of misconduct, and higher reporting rates. To build a culture of integrity, first conduct a cultural assessment to determine where perceptions of culture vary. Next, create escalation criteria to expand employee awareness of what constitutes misconduct. And finally, ensure that managers understand the business case for demonstrating ethical behaviors in their daily work and are prepared to respond to employees’ concerns.

Conduct a cultural assessment

Conduct a stand-alone cultural assessment to determine where perceptions of culture vary at your company and how employee nonreporting is exposing you to risk.

Build stronger climates

The most effective way to improve culture is by strengthening local employee climates. Learn what a strong climate is and how you can create one at your organization.

Identify misconduct trends

Compliance and ethics executives need a firm understanding of the environment in which their global workforce operates. Identify geographic differences in types of misconduct, reporting rates and resources used to report misconduct.

Gartner’s Corporate Integrity Expert

Brian Lee

Practice Leader, Gartner Research & Advisory

Smarter with Gartner

Related Content

press

Stamford Advocate: Employees show low confidence in colleagues’ ethics

press

Audit & Risk: Colleagues as Important as Managers in Creating Ethical Corporate Culture

press

Corporate Compliance Insights: The Key to Improving Corporate Culture

Gartner is a trusted advisor and an objective resource for more than 15,000 organizations in 100+ countries.


Learn more about how we can help you achieve your mission-critical priorities.