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Supplier Companies Are More Vulnerable to Integrity Challenges, ECI Study Shows
According to ECI’s Global Business Ethics Survey® (GBES®), 42 percent of supplier firm employees said they had witnessed misconduct on the job, compared to 28 percent who observed wrongdoing at non-supplier companies. Of the supplier company employees surveyed, nearly one-third said they felt pressure to compromise standards, compared to 18 percent at non-supplier companies.
“The findings show that employees in supplier organizations are far more likely than workers employed by non-suppliers to face integrity challenges, including pressure to violate standards,” said
The data showed significant variation among the 13 countries. Half of employees at U.S. suppliers said they saw misconduct, the highest level in the survey, compared to a low of 17 percent in
“Outsourcing portions of the supply chain is necessary to enable goods to get to market faster and more cheaply,” ECI Chief Executive Officer
The report also noted that misconduct is more likely at organizations that are experiencing internal upheaval such as layoffs, restructurings and mergers, and that such events are more common among supplier companies.
Harned added, “A supplier’s commitment to ethics and compliance should be a key consideration when assembling a supply chain. Among other things, business organizations should ask whether potential suppliers expect their employees to honor rules and adhere to high standards, and also provide employees the training to do so.”
The full report, “Ethics Risks in the Supply Chain”, and a link to register for a webcast examining the report findings on
About the Ethics & Compliance Initiative
The Ethics & Compliance Initiative (ECI) empowers organizations to create and sustain high quality ethics and compliance programs. 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
Rachael GassEthics & Compliance Initiative (ECI) +1.571.480.4405 firstname.lastname@example.org Matthew Bashalany FTI Consulting, Inc.+1.617.897.1545 email@example.com