The CIPD has unveiled concerning research ahead of its annual conference.
- The study highlights ethical compromises among global business leaders and HR professionals.
- Thirty per cent of leaders confess to prioritising high performance over ethical values.
- A significant proportion of HR professionals feel pressured to sacrifice personal ethics for business needs.
- The CIPD stresses the need for ethical frameworks to avert potential corporate scandals.
In advance of the CIPD Annual Conference in Manchester, new research has been released by the organisation, raising serious concerns about global business ethics. This research, conducted among 3,500 business leaders and 2,200 HR practitioners from the UK, USA, Asia, Middle East, and North Africa, is set to inform a new ethical framework as part of CIPD’s strategy for the future.
The survey results are alarming, with 30 per cent of business leaders admitting they would continue to reward high-performing employees despite ethical concerns. This indicates a willingness within organisations to overlook ethical values for short-term achievements. Furthermore, only 24 per cent of these leaders are always prepared to make sacrifices in the short term for the long-term good of people and society.
HR professionals are not immune to this ethical quandary, with 34 per cent acknowledging they often compromise their own principles to meet business objectives. Additionally, about 20 per cent of them ignore personal ethics altogether due to organisational pressures. Less than half believe it is important to uphold core values unconditionally.
CIPD’s chief executive, Peter Cheese, cautions that failure to adhere to ethical practices could lead to another corporate scandal. Cheese stated, “Far too many business and HR leaders focus on short-term gains, ignoring long-term implications for stakeholders like employees, customers, and communities.” He pointed to the VW scandal as a stark reminder of the repercussions of neglecting corporate ethics.
Looking ahead, the CIPD aims to equip future HR professionals with the knowledge and skills necessary to implement ethical principles effectively, with an emphasis on understanding the broader business context. Adrian Lewis, a sponsor attending the conference, concurs that ethics and long-term thinking are crucial for sustained business success, warning that neglecting these could lead to a loss of customer trust.
It is imperative that businesses integrate robust ethical frameworks to ensure sustainable success.
