Creating a culture of integrity does come at a cost. Publically listed companies traditionally believe that the stock market does not quickly reward actions that enhance the integrity of their company. However recent research from the Kellogg School of Management has questioned this (Read it here) and instead believe that a corporate culture of integrity actually adds value to the bottom line.
The research found that companies who gave ‘lip service’ to integrity, inclusiveness and positive employee morale had a lower level of financial return on a range of measures than those companies who had taken the time to develop a corporate culture that lives up to their claims. It seemed that employees rewarded those companies where a positive corporate culture had developed.
This gives business leaders an opportunity to reflect on whether their company’s culture actually is what they say it is. Maybe it’s time to take stock and see what your employees really think.
If you would further information on how Avondale Business School can help your organisation, contact Warrick Long
P: 02 4980 2168