Performance Management for an Ethical Culture

Publication type: Good practice guide
04 November 2014

Tags: Decision-making, Performance, Competitors, Treatment of Employees

Performance management has a major influence on how employees perceive the company they work for and on how they behave. This Good Practice Guide considers how organisations develop performance management processes which measure how business is done as well as what is achieved. Drawing on interviews and surveys with IBE Supporters companies and other organisations, the Guide suggests how to address the challenges that may be faced when integrating company values and ethical behaviour into performance management.

Speed read

Chapter 1 describes the context and prerequisites for ensuring that your performance management process supports your ethical values; i.e. that it is fair and just, that it is effective and contributes to the success of the organisation as a whole as well as optimising the performance of individual employees, and that it integrates an assessment of ethical behaviours.

Chapter 2 shows how organisations incorporate ethical values, behaviours and competencies, i.e. how business is done as well as what has been achieved, into their performance management systems. It gives examples of good practice in setting and assessing goals, and behaviours.

Chapter 3 looks at how the results of the appraisal process are applied to compensation and other rewards.

Chapter 4 provides a checklist to assist with embedding values into a performance management process.

Establishing an ethical corporate culture is recognised as key to business success, yet identifying mechanisms which sustain a commitment to ethical decision-making, influence behaviour and motivate employees is a challenge.

One of the key tools that organisations have to accomplish this is their performance management process, which has a major influence on how employees perceive the company they work for and on how they behave. 

This Guide will help organisations use their performance management process to embed ethical values into business practice and sustain a culture of high ethical standards. Central to this is embedding desired values and expected behaviours into goal setting and performance assessment, and establishing appropriate consequences relating to how well an employee performs against them.

Drawing on the experience of UK and International companies, this IBE Good Practice Guide considers:

  • What needs to be in place so that the performance management process itself drives organisational effectiveness and promotes ethical behaviour.
  • How organisations can develop performance management processes which measure the ‘how’ as well as the ‘what’.
Performance Management for an Ethical Culture

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Performance Management for an Ethical Culture
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