Corporate leaders expect employees to act in line with the corporate values, each and every day. This is a crucial enabler of the strategy as non-compliance is a major distraction from the core business; the rewarded side of risk. In order to be and remain a sustainable company it is necessary to effectively engage with your internal and external stakeholders.

The dilemma is that there are often insufficient tools in-house to assess to what extent the Corporate Values are embedded in each layer of the organisation. This is where Deloitte

can help. With an “outside-in” and independent approach, we can assess your Ethics “temperature”.

Employees want to work for a company with high ethical standards and expect to see that reflected in action by the tone at the top of the company and an effective program to foster and enforce that culture.

Employees seek and appreciate a “Speak-up culture, where it is safe to voice one’s opinion without the fear of retaliation“

Knowing and assessing your Ethics “temperature” is not about the risk or fear of non-compliance. It is about being more confident and certain that your company can continue to focus on rewarded risk, i.e. the core business, customers and employees and other stakeholders. This is not a certainty in today’s complex business environment. The mix of accelerating global M&A activity, where cultural differences need to be actively managed, accelerating IT developments such as the impact of social media on corporate events, increases the risk of reputation

Let Deloitte help you to move from reactive to preventive controls

Unlocking the value of Corporate ValuesHow Ethics powers performance

Ethics Powers PerformanceSeptember 2017

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Unlocking the value of Corporate Values | How Ethics powers performance

damage. In addition, the stakeholder management model has become more complex, with more and different stakeholders having a view and impact on your company. These relations need to be managed and clear and consistent communication with these stakeholders is key for the continuity of the company.

All stakeholders want companies to act in a sustainable manner and in line with their Corporate Values

Having confidence in your Corporate Values and the day to day decision making of all of your employees, suppliers and other third parties gives you a competitive advantage. This means that Ethics has the full potential of powering and sustaining your business.

The approachWhat Deloitte can do for you is to conduct a Quick Scan and assess your Ethics “temperature”, where different sources of information are evaluated with an Ethics lens. Combined with smart tooling and data analytics and in-depth interviews with key stakeholders, we will present you with our findings and recommendations to address any Ethics “temperature” deviations, outliers or anomalies, which are not contributing

positively to your companies Ethics health and resilience. What we offer is a unique mix of professionals with first-hand experience in corporate surroundings and deep knowledge on these topics. Let Deloitte’s data power be a force to keep you on the rewarded risk path of sustainable business success.

Recent corporate governance developmentsThe revised Dutch Corporate Governance Code 2016 expects management and supervisory boards to create a culture which promotes desired behavior and encourages employees to act with integrity. Frequent contact between the top of the company and employees is essential to assess how the culture is experienced within the organisation. The Corporate Values and culture should be embedded in such a way that it is appropriate for your company. An important question that requires an answer is to what extent senior management is living the values. A gap assessment is needed and any gaps should be remediated to maintain a standard of high ethics.

How good Corporate Values drive business performanceBy keeping out of the danger zone of non-compliance and the distractions this often means for a significant part of management, a well embedded Ethics program helps focus the core business. It also leads to more proud people, increased motivation and better talent onboarding, as employees want to work for companies with proven high ethical standards. Supplier and

other third party relationships flourish when there is a seamless integration and acknowledgement of each other’s Corporate Values. Failure of committing to these standards leads to customer churn, supplier churn or other lost business opportunities. More often, suppliers ask customers to sign up to their codes of conduct and other compliance requirements. For more information about our services to help you unlock the value of Corporate Values please contact:

Tjeerd Wassenaar Partner Risk Advisory Ethics, Governance & ComplianceMobile: +31 (0)6 1299 6720 Email: twassenaar@deloitte.nl

“Long term value creation is not possible without a culture of integrity”

Culture Path Tool A company should align its core processes around the desired Corporate Values, leadership style, incentive systems and communicate this broadly in the organisation. (edited from Deloitte Culture path 2016: Take your corporate culture off cruise control)

What are corporate values? The operating philosophies or principles that guide an organisation’s internal conduct as well as its relationship with its customers, partners, suppliers and shareholders. Corporate values are usually summarized in the mission statement or in the company’s statement of core values.