Corporate Culture and Values and the Concept of Integrity ......TRUSTEE STUDY (FINE, 2009) Integrity...
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1 Corporate Culture and Values and the Concept of Integrity: How and Why to Evaluate? Simon Givoli R&D, Midot Global September, 2018
Transcript of Corporate Culture and Values and the Concept of Integrity ......TRUSTEE STUDY (FINE, 2009) Integrity...
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Corporate Culture and
Values and the Concept of
Integrity: How and Why to
Evaluate?
Simon Givoli
R&D, Midot Global
S e p t e m b e r , 2 0 1 8
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IN THE LAST EPISODE…
Integrity tests predict counter-productive work behavior (CWB).
Integrity tests + Cognitive tests = High validity, leading to high ROI.
Nice decrease in employees’ CWB.
“Please sir, I want some more” Oliver Twist.
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GLOBAL ECONOMIC CRIME SURVEY
Most commonly reported types of economic crime
Assets
embezzlement
Procurement
fraud
Bribery &
corruption Cybercrime
Accounting
fraud
45% 27% 28% 34% 32% Episodic crime Systemic crime: erodes the integrity of employees
52% of fraudsters are on the inside
The adversary in the shadows –
or hiding in plain sight Who's attacking your company
Taken from PWC Global Economic Crime Survey 2018
The “silent competitor”: Economic crime continues to be a major concern for organizations of all sizes, across all regions and in virtually every sector. One in every two organizations reports being hit by economic crime.
49% of respondents
reported at least one of 14 economic
crimes
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RESOLVING THE QUESTION
Kurt Lewin’s (1936) equation:
Behavior = 𝑓 𝑃𝑒𝑟𝑠𝑜𝑛, 𝐸𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡
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WHAT IS CWB?
Minor
Organizational
Interpersonal
Serious
Production Deviance Property Deviance
Political Deviance Personal Aggression
“CWB… refers to any intentional behavior on the part of an
organizational member viewed by the organization as contrary to
its legitimate interests." (Sackett & DeVore, 2002)
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INTEGRITY & SOCIAL CULTURE
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Sample
60,952 job applicants, from 27 countries and 234 organizations in a variety of
sectors.
60% men and 40% women, median 12 years education, 5.2 years of job experience.
Measures
IntegriTEST
Corruption Perception Index
Hofstede’s cultural dimensions
Results
Significant negative correlation between IntegriTEST scores and corruption levels
(r = -.48, p
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SOCIAL CULTURE’S EFFECT ON
ORGANIZATIONAL CULTURE
Baseline for normative behavior in the company.
Changes in social values effect organizational culture.
Multi-cultural countries.
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ORGANIZATIONAL CULTURE
Norms’ Prevalence
Military Culture
Instrumental Leadership style
Civilian Culture
Abusive supervisor
Figure-Ground
Perception
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CONTROL & MONITORING
Security awareness
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PERSONAL - ORGANIZATIONAL FIT
P-O Fit
Job Satisfaction
+
Organizational Satisfaction +
Organizational Commitment +
Organizational Citizenship
+
Intention to Quit
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(Kristof-Brown, 2005)
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APPLYING LEWIN’S FORMULA ON CWB
Integrity Level
Job Satisfaction
Organizational Satisfaction
Organizational Commitment
Organizational Citizenship
Security Awareness
Organizational Norms
Behavior
Person Environment
Organizational Culture
Social Culture
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TRUSTEE STUDY (FINE, 2009)
Integrity level will predict CWB.
Situational variables (Organizational norms, Security awareness, and
Organizational commitment) will predict CWB.
Situational variables will moderate CWB when integrity is low.
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Participants
429 employees from a large international retailer in Israel.
38% men, 62% women; average age 30; median tenure 1 year.
Measures
Midot’s TRUSTEE
Integrity measure
Organization satisfaction and commitment
Security awareness
CWB
Self-reported admissions
TRUSTEE STUDY - METHOD
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TRUSTEE STUDY - RESULTS
Integrity level predicted CWB, r = -.35, p
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Interaction between integrity, employee commitment, and security
awareness.
TRUSTEE STUDY - RESULTS
2.5
3
3.5
4
4.5
5
5.5
6
Low integrity High Integrity
CW
B
High
Commitment
High Security
High
Commitment
Low Security
Low
Commitment
High Security
Low
Commitment
Low Security
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"see no evil, hear no evil, speak no evil"
IMPLEMENTING INTEGRITY TESTS
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Align integrity assessment with the company's culture and values.
Use together with other monitors.
Convey the message.
Set an example.
Identify organizational units and populations with high risks.
Periodical measurement.
HOW TO IMPLEMENT INTEGRITY TESTS
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SUMMARY
It is important to also measure employees’ for CWB risks.
The company’s culture has an effect on employees’ CWB.
Integrity measures have obvious advantages, and can be a
powerful management tool.
Managing the implementation of integrity measures is important.
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THANK YOU!
