Global  Business  Ethics  Survey™Ethics  &  Compliance  Risk  in  the  Supply  ChainKatie  Lang,  Senior  Researcher,  ECIMara  Lindokken,   Assistant  Director,  Research,  ECILindi Jarvis,  Senior  Managing  Director,  FTI  Consulting

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About  the  Ethics  &  Compliance  Initiative  (ECI)

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Our  Mission

ECI  empowers  organizations  to  build  and  sustain  High  Quality  E&C  Programs  (HQPs).

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About  the  Ethics  &  Compliance  Initiative  (ECI)

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The  Ethics  &  Compliance  Initiative  (ECI)  is  a  best  practice  community  of  organizations  that  is  committed  to  creating  and  sustaining  high  quality  ethics  &  compliance  programs  (HQPs).  With  a  history  dating  back  to  1922,  ECI  brings  together  ethics  and  compliance  professionals  and  academics  from  all  over  the  world  to  share  techniques,  research  and,  most  of  all,  exciting  new  ideas.  www.ethics.org

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Report    Sponsor

This  report  is  made  possible  in  part  by  generous  funding  from:

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ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

§ Increased  scrutiny  of  international  operations

§ Need  for  reliable  global  benchmarks  on  workplace  integrity  

§ Lack  of  information  about  private  sector  challenges  beyond  bribery/corruption

Ø Result:  A  rigorous,  multi-­‐country  inquiry  based  on  longstanding  NBES®  metrics

Why  GBES?  Why  Now?

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ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

§ Data  collected  November  30  – December  31,  2015

§ Online  panels  in  the  native  language  of  each  of  the  13  GBES  countries

§ Private,  public,  not-­‐for-­‐profit  sectors  included§ 1,000  responses  for  each  country  (1,046  for  US)§ Margin  of  Error:  +/-­‐ 3.1%  at  the  95%  confidence  level

Methodology

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ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

The  GBES  Countries

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§ Businesses  are  increasingly  dependent  on  complex  set  of  supply  chain  relationships

§ Significant  area  of  risk

§ Little  attention  to  employees  as  a  risk  area

§ Emerged  as  a  risk  area  in  GBES  2016

§ Dearth  of  research  from  employee  perspective

Why  Focus  on  the  Supply  Chain?

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Who  Are  Suppliers?

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Demographic  Differences:  Gender

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Demographic  Differences:  Management  Level

Supplier  Employee  Perspective:  Efforts  to  Promote  Workplace  Integrity

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Aware  of  E&C  Resources

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Utilize  E&C  Resources

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Deem  Management  to  Be  Ethical  Leaders

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Employee  Experience:  Workplace  Integrity  in  the  Supply  Chain

ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

Pressure  Is  More  Widespread

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0%

5%

10%

15%

20%

25%

30%

35%

GBES SUPPLIERS NON-SUPPLIERS

22%

31%

18%

ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

More  Employees  Observe  Misconduct

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0%

10%

20%

30%

40%

50%

GBES SUPPLIERS NON-SUPPLIERS

33%

42%

28%

ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

Observers  More  Likely  to  Report…

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And  to  Experience  Retaliation  as  a  Result

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0%

10%

20%

30%

40%

50%

GBES SUPPLIERS NON-SUPPLIERS

36%

45%

28%

Unique  Challenges  of  Workers  in  Supply  Chain

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Suppliers  Operations  Are  Complex

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ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

Supplier  Employees  Work  on  “Larger  Stage”

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Change  Is  Norm  at  Supplier  Organizations

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Implications  &Next  Steps

ethics.org    |    ©  2016  Ethics  &  Compliance  Initiative  

§ Feel  pressure  to  compromise  standards  and  to  observe  misconduct

§ Report  misconduct  when  observed  and  to  experience  retaliation  as  a  result

§ Be  aware  of  E&C  resources  provided  to  them  and  feel  better  about  their  ability  to  face  workplace  integrity  challenges

§ More  likely  to  agree  that  leadership  values  workplace  integrity  and  ethical  conduct

Employees  in  Supplier  Organizations  are  More  Likely  To…

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