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Posts Tagged ‘Business ethics’

Most companies aren’t tying business ethics with compensation, survey finds

In Uncategorized on May 28, 2009 at 5:33 pm

Despite public outcry and disdain from government leaders on executive compensation and employee bonuses, a survey conducted by the Society of Corporate Compliance reveals  relatively little connection between business ethics and corporate compensation found in the business environment. This new research among compliance and ethics professionals reveals that when it comes to compliance and ethics metrics, very little has been done to incent ethical behavior.

“The survey found that only a minority of companies have made ethics and compliance a process for determining how employees are compensated and only about one company in six ties employee bonuses and incentives to ethical performance,” said Roy Snell, Chief Executive Officer, SCCE.

The majority of survey respondents indicated that compliance and ethics are not strongly tied to how executives and line employees are compensated. When it comes to bonuses, ethics and compliance plays an even smaller role. According to the survey numbers, only 34% of survey respondents reported that compliance and ethics had some impact on the compensation process for executives and in the highly sensitive area of bonuses, compliance and ethics does not appear to be a factor for 76% of companies.

“The net result is that there is more work to be done in aligning business practices with stated commitment to compliant, ethical behavior,” said Snell.

To review the complete survey results, click here.

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