A report from LRN Corporation, a leading provider of ethics and compliance solutions, highlights significant generational differences in workplace ethics.
According to the 2024 Code of Conduct Report, younger employees, particularly Generation Z, are more likely to consult their employer’s code of conduct than older colleagues but are also more inclined to bend the rules when necessary to get the job done.
The report reveals that 63% of Gen Z employees say they frequently refer to their organisation’s code of conduct, compared to just 49% of Baby Boomers. However, Gen Z respondents are also 2.5 times more likely to agree that bending the rules is acceptable in certain situations. This generational gap presents new challenges for ethics and compliance (E&C) professionals who are responsible for maintaining consistent ethical standards across diverse, multi-generational workforces.
Workplace Ethics and the Code of Conduct
LRN’s 2024 Code of Conduct Report offers detailed insights into how different generations approach ethical decision-making and the role of codes of conduct in guiding workplace behaviour. While Gen Z employees are more engaged with these codes, their willingness to compromise on ethical standards raises concerns for companies seeking to build a strong ethical culture.
The report suggests that fostering a consistent ethical environment is becoming more complex as employees across generations hold different attitudes and behaviours towards workplace rules. “These findings underscore the complexity of fostering strong ethical cultures, particularly as different generations bring varying attitudes, expectations, and behaviours to the workplace,” said Jim Walton, LRN Advisory Services Director and lead author of the report. “Codes of conduct play a key role in guiding the development of ethical, compliant workplace cultures.”
Global Variations in Code Engagement
The report also highlights the correlation between the frequency of code of conduct engagement and the availability of training in different regions. Employees in countries like India and China, where training on codes of conduct is widespread (97% and 91%, respectively), are the most likely to engage with these codes regularly. In contrast, countries with lower training levels, such as the Netherlands (64%), report higher rates of employees who never engage with their organisation’s code of conduct.
This clear relationship between training and engagement indicates that organisations need to invest more in compliance education to ensure that their employees fully understand and adhere to ethical guidelines.
Leadership Disconnect and Ethical Challenges
Another key finding from LRN’s report is a persistent disconnect between different levels of management when it comes to code of conduct engagement. Senior leaders tend to have a more optimistic view, with 90% believing the code is followed across the organisation. However, this confidence drops among middle managers (81%) and front-line employees (69%), suggesting that ethical compliance is not perceived consistently throughout organisations.
This leadership gap poses challenges for E&C professionals as they work to create an ethical culture that is embraced at every level of the organisation.
Technology and Hybrid Work Boost Ethical Engagement
The report also touches on the role of technology in ethics programmes, noting that while organisations have been rolling out digital codes of conduct, many employees still prefer traditional formats like PDFs. Employees are 1.7 times more likely to favour the traditional format over newer, interactive digital tools. This suggests that organisations may need to communicate the advantages of these innovations more effectively to encourage widespread adoption.
Hybrid working arrangements appear to be beneficial for ethical engagement, with employees in hybrid roles reporting the highest levels of interaction with their organisation’s code of conduct. The report indicates that a balance between in-office and remote work might help foster a more engaged and ethically compliant workforce.
Bridging Generational Gaps in Ethical Culture
As organisations look to the future, addressing generational differences in workplace ethics will be crucial for maintaining strong ethical cultures. Walton emphasises the importance of investing in innovative compliance tools, particularly as technology evolves. “Technology such as artificial intelligence will be critical to how those codes evolve in the years to come, so investing in innovative compliance tools – as well as ensuring those tools are accessible and trusted by employees across all demographics – is essential,” he said.
LRN’s findings indicate that organisations must strategically manage these generational gaps to ensure consistency in ethical behaviour. As workplace cultures continue to evolve, especially in a globalised and digital environment, codes of conduct remain a vital tool in guiding ethical decisions and maintaining organisational integrity.
The report incorporates data gathered earlier in the year as part of LRN’s 2024 Benchmark of Ethical Culture report and uses the company’s proprietary Code of Conduct Assessment Tool to assess the effectiveness of codes across eight key dimensions. This tool draws on nearly three decades of research and experience in developing ethical and compliant workplace cultures.
