Reward employees for how they do business, says IBE
Reward employees who uphold company values, says a new guide from the Institute of Business Ethics (IBE).
Knowing that they will be appraised on how they do business as well as what they achieve will increase employees’ sensitivity to the ethical matters they may confront in their day-to-day business, maintains the Institute.
While performance management has a major influence on how employees perceive the company they work for and on how they behave, a recent IBE survey exploring corporate ethics policies and programmes found that more than 40% of FTSE 350 companies do not include ethics in employee performance appraisals.
Performance Management for an Ethical Culture: an IBE Good Practice Guide considers how organisations develop performance management processes which measure the ‘how’ as well as the ‘what’.
Drawing on interviews and surveys with IBE subscriber companies and other organisations, the Guide suggests how to address the challenges that may be faced when integrating company values and ethical behaviour into performance management.
Ruth Steinholtz, author of the Good Practice Guide, said: “When an organisation measures their employees’ performance in terms of both what they have achieved, and how it has been achieved, it shows a real commitment to creating an ethical culture. Organisations that celebrate integrity in the workplace will find that not only will they retain employees committed to values, but they will attract top talent too.”
Philippa Foster Back CBE, IBE’s Director said: “Scandals involving bribery, such as Siemens and GSK and mis-selling, like PPI, have shown that the ends do not justify the means. A company can make a clear commitment to ethics by rewarding employees who do their business ethically. This Good Practice Guide will help organisations use their performance management process to embed ethical values into business practice and sustain a culture of high ethical standards.“