Ethical cultures outperform topline metrics and reduce risk
2024 Report
Benchmark of Ethical Culture
What’s in this report from LRN:
Ethical culture is both an organizational risk and a company’s most effective control. LRN’s research found that companies with the strongest ethical cultures outperform across a variety of traditional business metrics and experience less risk. This report provides the benchmarks and impact of ethical culture on risk, misconduct and business results as well as key insights on what matters now and next — from hybrid work to the impact of AI.
A few highlights:
- Companies with the strongest ethical cultures outperform those with weaker ethical cultures by 50%.
- Organizations with strong ethical cultures are 2.6x more likely to be adaptable, a critical determinant of a company’s resilience.
- Nearly 25% of employees around the world agreed “it is OK to break the rules if needed to get the job done,” Gen Z 2.5x more than Boomers
- Psychological safety as the strongest predictor of an employees’ willingness to report misconduct, with a 2.4x magnitude effect.
About LRN
LRN’s mission and purpose is to inspire principled performance and help people around the world do the right thing. Since 1994, LRN has worked to propel organizations forward with the partnership, knowledge and solutions to build ethical culture. More than 2,800 companies and tens of millions of learners worldwide utilize LRN solutions and take LRN e-learning courses to help navigate complex regulatory environments and foster ethical, responsible and inclusive cultures. In partnership with LRN, companies translate their values into concrete corporate practices and leadership behaviors that create sustainable competitive advantage. By acting upon shared values, companies and their people find the means to outbehave and outperform. Learn more at LRN.com and follow on Twitter, LinkedIn and Facebook.
